Dell Stock: What's Really Going On With The Price

Dell's AI Hype Train: All Aboard for Disappointment?

So, Dell's stock is doing the cha-cha after hours, huh? Up 2% after initially tanking. Classic. They beat earnings expectations, but sales are slightly below estimates. Give me a break. It's always the same song and dance with these tech companies. "AI this," "AI that."

The real kicker? "Record AI server orders of $12.3 billion!" Oh, wow. An "unprecedented $30 billion in orders year to date." Someone get me a barf bag. I'm so tired of hearing about AI. It's the new blockchain, the new metaverse – a shiny distraction from the fact that most of these companies are just selling the same old crap with a fresh coat of paint.

And it ain't just Dell. NVDA stock is probably loving this. AMD is probably scrambling to catch up. Google stock and AMZN stock are already priced for world domination, so who cares about them.

The Margin Squeeze: Where's the Beef?

Here's what I find interesting. Aletheia Capital Downgrades Dell Technologies Stock (DELL) to ‘Hold’ Ahead of Q3 Earnings before the earnings call, citing margin pressures and Nvidia's AVAP initiatives as the reason. Margin pressures from higher memory costs? Rising risks from Nvidia? Translation: Dell's getting squeezed, and they're not happy about it.

Lin, the Aletheia analyst, even lowered his Fiscal 2026 and 2027 gross profit margin estimates. He sees downside risk to the Street’s consensus Fiscal 2027 AI server estimates. His model assumes $36 billion in AI server revenue, including only 5,000-plus GB racks, compared to the consensus estimate of $50 billion in revenue and expectations of 10,000 to 12,000 racks.

Wait a minute... So, the "unprecedented" AI server orders might not be as lucrative as Dell wants us to believe? Color me shocked.

I'm not saying Dell is lying, per se. But let's be real: companies have a way of massaging the numbers to fit the narrative. They highlight the good, downplay the bad, and hope nobody notices the sleight of hand.

And honestly, who even knows what these "AI server orders" actually are? Are they actual, concrete deals, or just letters of intent? Are they profitable, or are they being sold at a loss to gain market share? The devil is always in the details, and Dell ain't exactly forthcoming with those.

My garbage disposal just started making a weird noise. It's probably another sign of the impending apocalypse. Or maybe just a clogged pipe. Who knows anymore?

The Cook(ie) Crumbles

Oh, and did you see the fine print? Buried in the news about Dell's stock gains is the usual corporate garbage about cookies and privacy policies. Apparently, NBCUniversal and its affiliates are tracking everything we do online. Shocker.

They're using "strictly necessary cookies," "personalization cookies," "ad selection and delivery cookies," and even "social media cookies" to collect data about our browsing habits. They can even associate these cookies with other information they have about us. It's enough to make you want to throw your computer out the window.

But wait, it gets better. We can "manage our Cookie preferences" by clicking on a link in the footer of the website. How convenient. It's like they're saying, "We're spying on you, but hey, at least we're giving you the option to opt out... sort of."

It's all a big, elaborate game, offcourse. They collect our data, sell it to advertisers, and then pretend to care about our privacy. And we, the hapless consumers, are supposed to just sit back and take it.

This Whole Thing Smells Fishy...