“Worries about competition from other tech companies and spending cuts from government customers drove Dell shares lower in premarket trading Wednesday,” The Associated Press reports.
“On Tuesday, the computer maker said its fourth-quarter profit dropped 18 percent to $764 million, and its revenue prediction for the current quarter was short of Wall Street analysts’ expectations,” The Associated Press reports. “Like other PC makers, the Round Rock, Texas, company was squeezed in the past quarter by parts shortages caused by massive flooding in Thailand in October. The fallout from that catastrophe temporarily closed Thailand factories that churn out hard drives, driving up the prices that Dell had to pay for them.”
AP reports, “Sterne Agee analyst Shaw Wu maintained his underperform rating on the stock, saying that investors have underestimated the competitive threat to Dell from Apple and other rivals such as Acer, Lenovo and Hewlett-Packard. Shaw said Dell may have a difficult time improving its operations.”