Good morning - QQQs +30bps as PCE came in inline this morning. Yields are ticking down and China is dn 2% on weaker mfg data. Some mixed prints overnight (DELL/MDB weaker, MRVL in line, ESTC/ZS better)…Let’s get to it…
Earnings Recaps
DELL -17%: AI server backlog and ISG margins disappoint significantly. Apr-Q AI server backlog of $3.8bn was below buyside expects which had crept up to $4.5B The full year 25 guide was also disappointing with FY revs/EPS of $95.5bn/$7.65 in line with street but bulls had been playing for ~$10 in EPS, which seems off the table for now. Bernstein’s Chiang notes that plugging in a mid single digit non-ai servers guide and their storage guide of returning to growth in 2H, only implies $7B in AI servers in F25, much less than the 10B+ bulls playing for. DELL’s guide is typically conservative, but how conservative is the question. Assuming supply cooperates, checks still show DELL can ship $10B+ this year. It wasn’t good up until then, but got worse on the c…
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