In the world of technology, this week brought a mix of earnings reports and industry news. While Salesforce faced disappointment, Broadcom was impressed with better-than-expected results. HP encountered weakness in PC demand, and Dell adjusted its estimates in a challenging macro environment. Meanwhile, Amazon denied reports of plans to disrupt the telecom industry. Let’s dive into the details of these significant developments.
1. Soft Guidance at Salesforce
- Salesforce reported better-than-expected earnings but faced a stock slump of 4.7%.
- The company’s revenue outperformance was below historical trends, and it missed under-contract sales expectations for the next 12 months.
- Despite this, Goldman Sachs maintained a Buy rating, emphasizing the results’ strength given the challenging macro backdrop.
- Bank of America reaffirmed its Top Pick status and was impressed by Salesforce’s guidance beat for revenue growth.
2. Broadcom’s Better-than-Expected Print
- Broadcom delivered another solid quarter, exceeding earnings expectations with $10.32 per share and slightly better-than-expected revenue of $8.73 billion.
- The company’s generative artificial intelligence potential garnered positive attention, leading to expectations of above-model growth in the medium- to long-term.
- BofA assigned Broadcom a new Street-high price target of $950, recognizing the underappreciated value of its AI portfolio.
3. HP Sees Weakness in PC Demand
- HP reported its lowest revenue for a quarter since early 2020, driven by ongoing weakness in PC demand.
- Overall revenue dropped by 21.7%, missing expectations, while adjusted earnings per share of $0.80 beat estimates.
- Barclays expressed concerns about aggressive guidance, expecting downside for shares due to top-line, margin, and cash flow pressures.
- HP shares partially recovered by the end of the week, rising 3.8%.
4. Dell Throttles Estimates Amid Challenging Macro Environment
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- Dell Technologies beat Street estimates with adjusted EPS of $1.31 and better-than-expected revenue of $20.9 billion.
- However, Dell’s revenue fell amid a weaker backdrop for PC demand, resulting in cautious comments and a lower revenue forecast for Q2.
- Goldman Sachs and Deutsche Bank maintained their buy ratings, but Deutsche highlighted a weak recovery in Dell’s core PC business.
- Deutsche also viewed the risk-reward for the stock as attractive, considering the tough macro environment faced by other IT hardware peers.
5. Amazon Denies Report of Telecom Plans
- Following a Bloomberg report that Amazon was in talks to offer wireless services to Prime subscribers, an Amazon spokesperson denied any plans to add wireless services at this time.
- Telecom companies such as AT&T, Verizon, and T-Mobile also denied being in talks with Amazon.
- The initial report had a positive impact on Amazon’s stock while causing sharp slides for telecom companies.
- DISH Network, already collaborating with Amazon, experienced a boost in shares, as it is expected to sell its wireless services on Amazon in July.
Read more:JPMorgan Takes the Lead in Embracing AI as Wall Street’s Revolutionary Tech Trend
Conclusion:
This week in tech witnessed a mix of ups and downs. Salesforce faced market disappointment despite reporting better-than-expected earnings. Broad com impressed with its performance, while HP encountered weakness in PC demand. Dell adjusted its estimates due to a challenging macro environment. Finally, Amazon denied reports of plans to disrupt the telecom industry, causing fluctuations in the market. Stay tuned for more updates in the dynamic world of technology.
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I, Jones, am an experienced professional in the field of news, specifically focused on tech news, startup news, and VC funding news. The information and analysis provided in this blog are based on my expertise and industry knowledge. However, please note that the content is for informational purposes only and should not be considered as financial or investment advice. Readers are encouraged to conduct their own research and consult with professionals before making any financial decisions. I cannot be held liable for any inaccuracies, errors, or omissions in the content or any actions taken based on the information provided in this blog.