Dell Technologies Sees Impact Of Broadcom's Acquisition Of VmWare Result In Fall In Co's Other Businesses Net Revenue Beginning In Q4 Of FY24
Portfolio Pulse from Benzinga Newsdesk
Dell Technologies anticipates a decline in its other businesses' net revenue starting in Q4 of FY24 due to Broadcom's acquisition of VMware. The impact is expected as a result of the change in ownership of VMware, which has been a significant part of Dell's business operations.
December 08, 2023 | 1:50 pm
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NEGATIVE IMPACT
Dell Technologies expects a negative impact on its other businesses' net revenue following Broadcom's acquisition of VMware, starting in Q4 FY24.
Dell's forecast of a revenue decline in its other businesses due to the Broadcom-VMware deal suggests a negative short-term impact on Dell's financial performance. This could lead to bearish investor sentiment and a potential decrease in Dell's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Broadcom's acquisition of VMware is cited as the reason for an anticipated decline in Dell Technologies' other businesses' net revenue from Q4 FY24.
While the acquisition of VMware by Broadcom is a strategic move for Broadcom, the direct short-term impact on Broadcom's stock is neutral. The news focuses more on the impact on Dell's revenues rather than Broadcom's immediate financial performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50