Dell Inc. (DELL), Renren Inc (RENN), Cisco Systems, Inc. (CSCO): This Week’s Dumbest Stock Moves

Page 1 of 2

Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. Let’s take a look at five dumb financial events this week that may make your head spin.

1. You can ring my Dell
Dell Inc. (NASDAQ:DELL)
was supposed to report earnings next week, but it bumped its release to Thursday after the market closed. It wasn’t pretty. Revenue was flat, and adjusted earnings were shaved in half.

Michael DellHowever, we’re kicking off this week’s list of dumb moves with Dell Inc. (NASDAQ:DELL) because of the guidance that the company chose to give investors.

Given the company’s announcement on Feb. 5 of a definitive merger agreement to take Dell private, the company is not providing an outlook.

Let’s see. The struggling PC giant is trying to get shareholders to vote in favor of a deal to be taken private, but it won’t tell them what they’ll be giving up if they do decide to cash out here?

That’s just bad form, Dell Inc. (NASDAQ:DELL).

2. Social dysfunction
Instead of being hailed as the Facebook of China, maybe Renren Inc (NYSE:RENN) should be tagged as the Faceless of China.

The Chinese social networking website operator was crushed after posting disappointing quarterly results. Revenue growth in its latest quarter of 11% was less than half the 23% that Wall Street was targeting.

It gets worse. Renren Inc (NYSE:RENN)’s outlook for the current quarter calls for revenue to fall by 3% to 7% over the prior year’s performance. Ouch! Analysts were betting on a 28% increase.

Online advertising has been sluggish at Renren Inc (NYSE:RENN) despite its growing base of users, but now, even the online gaming business that was driving results higher has peaked.

Renren Inc (NYSE:RENN) went public at $14 two years ago. It has gone on to shed more than two-thirds of its value. Until it can start growing again, it won’t be granted too many friend requests from investors.

3. The Cisco kid
Router rooter Cisco Systems, Inc. (NASDAQ:CSCO) tumbled after posting uninspiring guidance and announcing that it would be laying off 4,000 employees.

An analyst asked for some more color on the decision to whack away 5% of its workforce in a seemingly improving economy. “The environment in terms of our business is improving slightly, but nowhere near the pace that we want,” CEO John Chambers responded.

Layoffs happen. Costs need to stay in check. However, how does Cisco Systems, Inc. (NASDAQ:CSCO) expect to pick up the pace of its growth with 4,000 fewer employees around?

4. Up against the Wal
Wal-Mart Stores, Inc. (NYSE:WMT)
posted lackluster financials, and it had no problem getting political in drumming up a scapegoat.

The world’s largest retailer pointed to this year’s elimination of the payroll tax stimulus — an effective 2% increase — as the primary culprit behind Wal-Mart Stores, Inc. (NYSE:WMT)‘s negative comps.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!