Here’s Why Dell is Selling Off and Facebook is Up
Shares of Dell Inc. (NASDAQ:DELL) plummeted more than 17 percent in Wednesday’s trading. The computer company reported disappointing first-quarter results. Net income fell 32.8 percent to $635 million (36 cents per share), compared to $945 million (49 cents per share) a year earlier. Revenue for the quarter also declined 4 percent to $14.42 billion. “We’re committed to continuing our strategy to re-shape Dell’s business as an end-to-end IT provider,” said Michael Dell, chairman and CEO. “We saw continued progress in our first quarter with the innovative IT solutions we’re providing – notably our latest Dell servers, storage, networking and services that deliver customers enhanced productivity.”
Despite a problematic initial public offering, shares of Facebook (NASDAQ:FB) appear to be finding some kind of support. The social-media giant gained more than 2 percent in trading and received a buy rating from Needham with a price target of $40 per share. Morgan Stanley (NYSE:MS) and Nasdaq (NASDAQ:NDAQ) are quickly becoming the center of attention for lawsuits surrounding the botched IPO.
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Big Lots Inc. (NYSE:BIG) shares are up 3% in noon trading, but rebounded to climb higher. The retailer reported that first-quarter net income fell 22.3 percent to $40.7 million (63 cents per share), compared to $52.5 million (70 cents per share) a year earlier. Revenue gained 5.5 percent to $1.29 billion.
Toll Brothers Inc. (NYSE:TOL) shares increased 10 cents in morning trading. The homebuilder reported a fiscal second-quarter profit of $16.9 million (10 cents per share), compared to a net loss of $20.8 million a year earlier. Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated, “It appears that the housing market has moved into a new and stronger phase of recovery as we have experienced broad-based improvement across most of our regions over the past six months. The spring selling season has been the most robust and sustained since the downturn began.”
Shares of American Eagle Outfitters Inc. (NYSE:AEO) edged slightly lower Wednesday at noon. The clothing retailer said net income for the first-quarter surged 40.1 percent to $39.7 million (20 cents per share), compared to $28.3 million (14 cents per share) a year earlier.
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