Topline
Dell shares rose along with other technology stocks on Wednesday despite third-quarter revenue falling $120 million short of Wall Street’s revenue expectations, though the company was able to salvage the miss with stronger-than-expected earnings per share and a positive AI sales forecast.
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Key facts
Shares of Dell closed 5.8% higher, pushing the stock to a 12-day high.
The company reported third-quarter revenue of $27.01 billion, down $120 million from the $27.13 billion expected by the London Stock Exchange Group’s consensus estimates. CNBCwhich noted that Dell’s earnings per share of $2.59 were well above LSEG estimates of $2.47.
Dell expects revenue of approximately $31.5 billion in the fourth quarter, with sales of AI servers reaching $9.4 billion.
Dell joined a string of other tech companies trading positively on Wednesday, including Oracle (4%), AMD (3.9%), Microsoft (2.1%) and Nvidia (1.4%).
Wednesday was also a positive day for the top indexes, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average all up at least 0.67%.
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Tangent
Cannabis stocks then also rose along with the indexes Bloomberg reported Medicare may cover CBD treatments for older patients. Rising cannabis stocks included Tilray Brands (4.7%), Innovative Industrial (1%) and Curaleaf (5%). According to Bloomberg, an early version of the supposed Medicare plan applied to seniors in the oncology and palliative care setting.
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