- Investors are souring on Dell Technologies Inc (NYSE:D), HP Inc (NYSE:HPQ), and Hewlett Packard Enterprise Co (NYSE:HPE) on concern that surging inflation will curb consumer spending, Bloomberg reports.
- The report notes the Federal Reserve's effort to dampen those price increases is likely to crimp the economy in the coming months, further denting sales.
- Related: Here's Why Morgan Stanley Downgraded Dell
- Goldman Sachs also downgraded Dell as the moderating demand among low-end consumers was enough to offset its attractive valuation.
- The report notes that investors are chasing companies less dependent on the economic cycle to drive sales and turning their backs on computer makers despite their cheapest valuations.
- Investors are eying Apple Inc (NASDAQ:AAPL), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), and Amazon.com Inc (NASDAQ:AMZN) thanks to their ample free cash flow and have defensible tailwinds in a dicey and uncertain economic environment, as per an analyst.
- Analysts predict that profits for tech hardware and equipment companies will increase by 8.8% in 2022, lower than the 13% expected for the tech sector overall and the S&P 500's 10%, Bloomberg data shows.
- Price Action: DELL shares traded lower by 2.86% at $47.27 on the last check Wednesday.
