As a component of the S&P 500, the Nasdaq Composite, and other equity indices, the sell off in computer maker Dell (DELL) could impact some large-cap growth and tech-oriented mutual funds with large stakes in the stock.
The computer giant’s second-quarter report indicated that deep discounting in personal-computer prices failed to kindle sales. Dell’s stock lost as much as $3.33, or 8.4% on the Nasdaq earlier today, causing the index to tumble.
Megan Graham-Hackett, computer hardware equity analyst at Standard & Poor’s, is reiterating her strong buy recommendation on Dell stock despite yesterday’s results. “Second quarter EPS of $0.38 versus $0.31 met our estimate, but aggressive pricing in desktops caused revenues, up 15%, to be 1.2% shy of our model,” she said.