Dell And HP Shares Drop 12% After Worse-Than-Expected Forecasts

Earnings Forecast and Stock Performance - Dell expects Q4 revenue between $24 billion and $25 billion, with adjusted earnings of $2.50 per share, below analyst estimates of $25.5 billion and $2.65 per share [2] - HP projects Q1 earnings per share between 70 cents and 76 cents, compared to analyst estimates of 85 cents [3] - Dell's shares dropped to $124, marking the largest dip since a 17.8% decrease on May 30 [1] - HP's shares fell to just over $34, on track for its worst loss since March 2020 when shares dropped over 14% in a single day [2] - Dell's shares had increased by 89.5% this year before Wednesday, while HP's shares had risen by more than 31% [5] AI Market and Business Performance - Dell's COO Jeff Clarke described the AI market as a "robust opportunity" with "no signs of slowing down," but noted that Dell's AI business "will not be linear" due to a "changing" market [3] - Dell reported $800 million in AI server sales and a $2.9 billion order backlog in March, contributing to a record high stock price [6] - HP's CEO Enrique Lores suggested the company would benefit from the transition to an upgraded Windows operating system, though the transition has been slower than expected and sales have plateaued [6] Financial Results and Valuation - Dell reported Q3 earnings of $2.15 per share, beating analyst estimates of $2.06, and revenue of $24.4 billion, slightly below estimates of $24.67 billion [4] - Dell founder and CEO Michael Dell's fortune decreased by approximately $7.1 billion due to the drop in Dell's shares, leaving him with a net worth of $103.7 billion [7]