Dell shares open down 11%, marking the largest drop since April.

Dell shares open down 11%, marking the largest drop since April.

Dell Technologies Inc. (NYSE:DELL) shares opened down 11% on July 2, 2025, marking the largest drop since April's selloff. The stock, which has been volatile since September 2024, when Jim Cramer discussed the company, has seen significant fluctuations in its price. In September 2024, Cramer noted that while Dell has potential, other AI stocks might offer higher returns with limited downside risk [1].

Dell Technologies Inc. reported its fiscal second quarter earnings on July 1, 2025, beating analysts' expectations. The company earned an adjusted $2.32 per share on sales of $29.78 billion, compared to analysts' expectations of $2.29 per share on sales of $29.02 billion [2]. Despite the earnings beat, the stock fell in extended trading, dropping more than 4% to 128.51. This drop was likely due to the company's mixed guidance for the current period, where it forecast adjusted earnings of $2.45 per share on sales of $27 billion, falling short of Wall Street's expectations of $2.55 per share on sales of $26.4 billion.

The stock's recent volatility can be attributed to various factors, including its exposure to AI demand and the broader economic climate. In November 2024, Dell's shares fell by 12.3% as investors questioned the firm's exposure to AI demand. The stock then lost 17% in February 2025 after missing analyst estimates for its fourth quarter revenue and first quarter guidance. The stock was hit by a 25% fall during April's Liberation Day selloff and has since seen a 7.6% decline from its August peak [1].

Dell Technologies Inc. operates in the AI industry by providing companies with server equipment. The company's performance is closely tied to the broader AI sector, which has seen significant growth and investment in recent years. However, the stock's recent performance highlights the challenges and uncertainties that investors face when investing in AI-related companies.

References:
[1] https://finance.yahoo.com/news/dell-technologies-inc-dell-stock-212102270.html
[2] https://www.investors.com/news/technology/dell-stock-fiscal-q2-2026-earnings/