Stock Movers Dell Sinks, Caterpillar Falls, Ulta Tumbles on Cooling Consumer Spending
Aug 29, 2025
Dell's shares took a hit as unsatisfactory sales of AI servers led to lower profit margins, despite an optimistic annual outlook. Caterpillar faced a stark warning about rising tariffs, which could cost the company up to $1.8 billion this year. Meanwhile, Ulta's stock tumbled amid caution from consumers, casting doubt on its revised sales forecasts in the beauty market. These struggles highlight the shifting dynamics of consumer spending and external economic pressures impacting major players in diverse sectors.
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Margins Will Make Or Break Dell's Story
- Analysts say margin trajectory will be a key watch point to validate Dell's recovery story.
- Robust full-year revenue guidance could support medium-term growth if server demand rebounds.
Dell's AI Server Slowdown
- Dell reported a sharp drop in AI server orders, booking $5.6 billion versus $12.1 billion previously.
- Operating margin missed estimates at 8.8%, creating investor concern despite raised annual outlook.
Earnings May Bottom Then Stabilize
- Despite the tariff hit, analysts expect earnings to trough this year and margins to sit near the bottom of target ranges.
- That implies potential stabilization if selling conditions improve or tariffs ease.