Stock Movers Dell Profit Outlook; Gap Tariff Concern; Red Robin Soars
May 30, 2025
Dell Technologies surprises with a robust profit outlook, driven by a staggering $12.1 billion in AI orders, suggesting a bright future in tech. In contrast, Gap faces a tough road ahead, warning of up to $300 million in tariff impacts while grappling with weak sales at some of its brands. Costco is optimizing its position with strong earnings, hinting at further market gains despite tariffs. Meanwhile, Red Robin impresses investors, reporting unexpected profits and reaffirming its guidance. The episode blends serious market insights with some light-hearted burger banter.
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Episode notes
Gap's Tariff Impact and Brand Performance
- Gap expects a tariff impact up to $300 million but has strategies to mitigate more than half of it.
- It faces weakness in higher-end brands but sees strength in affordable ones like Old Navy and Gap.
Costco's Tariff Navigation Strategy
- Costco is successfully softening tariff exposure by rerouting goods and sourcing locally.
- This strategy enables Costco to potentially gain further market share despite consumer softness elsewhere.
Dell's AI Server Orders Boost Outlook
- Dell sees a profit outlook beating estimates due to a big rise in AI-related server orders.
- U.S. Department of Energy contracts with Dell and Nvidia boost its prominence in AI computing.