Dell Shares Fall on Earnings Report

Shares of Dell fell nearly 13 percent Friday as investors took a pessimistic view on plans to reignite the computer maker's fortunes with a strategy that could lower profits in the short term. Shares tumbled $3.60, or 12.8 percent, to close at $24.54 in trading Friday, on news from Thursday's earnings report, released after the market's close. Dell CFO Don Carty told analysts that restructuring costs will cut into profits as the company seeks more acquisitions and layoffs. Carty added that a slower decline in component costs could also have an impact. The outlook overshadowed a 27 percent jump in third-quarter earnings.

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Dell created this problem themselves, they came in and destroyed the market many years ago. In exchange for short term sales and market share they destroyed margins across the industry. While market share and suppliers kissing your butt will help your for a certain amount of time, eventually it's all going to come crashing down and without profit to keep you going, it gets ugly.