Dell Under Pressure Amid Downgrade and Weak Demand

29 days ago

Billy Lipshelt

"Yeah, Dell ticker Dell D LL worst performer in the S&P 500 down 8.4% closing at the lowest level since early September. This came after Morgan Stanley downgraded the stock and some peers on sluggish demand, basically saying that this whole super cycle about memory that's lifting Micron and lifting some of these chip makers is actually going to hurt their bottom line, hurt their businesses. So, not only does it impact margins when chips are more expensive, they're also worried a bit about what the impacts will be for the broader economy. So, if people don't want to pay up for a few hundred or $1,000 for a new computer, then not only you're dealing with more expensive inputs, then people aren't really buying it."

Dell appears to be under significant pressure following a downgrade from Morgan Stanley, with concerns centering on weak demand and higher chip costs affecting margins and overall business performance.

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