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Consumer Electronics

Are Dell’s Shares Still Too High?

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

Bank of America dropped its price target on Dell (DELL) from $29 to $28 today. Call it a rounding error. The reasons were that sales to corporate customers, the core of Dell’s business, have been slow, and Vista has not come along yet to save the PC world.

But, there are other things that may push Dell lower. The resurgence of Sun (SUNW) means that the company is probably still picking up share in the server market. HP (HPQ), IBM (IBM), and Dell are the other significant companies in that business. Sun is getting the share from someone.

Investment bank UBS thinks Dell is also losing share in the PC markets in the US and Europe.

Dell’s shares have moved from $19 in July to over $24 recently. But, as companies like Motorola (MOT) and AMD (AMD) have discovered, the punishment for missing earnings this season is pretty severe.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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