Friday, April 21, 2006

Dell Downgrade

Wall Street was buzzing about Google's good news this morning, but on the negative side, Dell was downgraded by Citibank analyst Richard Gardner. He cites margin pressure on PC's and servers, based on competitors' effective response in matching Dell's legendary inventory exposure (or lack of, actually). Interesting their printer business doesn't even come up in the text of the downgrade. (And an amazing (to me) footnote to Dell's downgrade? It's the first time ever!)

A friend of mine taught me a new word not long ago. Schadenfreud.

Have a great weekend!


MaestroBri said...

The Dell comments in the linked article in eWeek say it all.,1759,1947244,00.asp

Dell has had a world-class run, but nothing in their business model is still screaming "disruptive innovation". "More of the Same" is not a Nasdaq battle cry!

by the way, if you are reading this blog, chances are very good that you qualify for a free lifetime subscription to eWeek (formerly Business Week)and I highly recommend it.

Jim Lyons said...

Good comments, appreciate it. I need to get my subscription. BTW it's PC Week that eWeek replaced (spoken like a true PC Industry dinosaur!)...