Topline
Dell shares surged Wednesday alongside other tech stocks despite third quarter revenue falling short of Wall Street revenue expectations by $120 million, though the company was able to salvage the miss with stronger-than-expected earnings per share and a positive AI sale forecast.
Dell shares jumped nearly 7% Wednesday.
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Key Facts
Dell’s stock closed up 5.8%, bringing shares to their highest point in 12 days.
The company reported $27.01 billion in revenue for the third quarter, $120 million shy of the $27.13 billion expected by London Stock Exchange Group consensus estimates, according to CNBC, which noted Dell’s $2.59 in earnings per share was well above LSEG estimates of $2.47.
Dell expects around $31.5 billion in sales in the fourth quarter, with AI server sales accounting for $9.4 billion.
Dell joined a swath of other tech companies that traded positively Wednesday including Oracle (4%), AMD (3.9%), Microsoft (2.1%) and Nvidia (1.4%).
Wednesday also marked a positive day for top indexes, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average all climbing at least 0.67%.
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Tangent
Cannabis stocks also jumped alongside indexes after Bloomberg reported Medicare may cover CBD treatments for senior patients. The surge in cannabis stocks included Tilray Brands (4.7%), Innovative Industrial (1%) and Curaleaf (5%). An early version of the supposed Medicare plan applied to seniors in oncology and palliative care settings, according to Bloomberg.