Jim Cramer on Dell (DELL): “General Services Administration is Trying to Put the Squeeze to Federal Contractors”

We recently published a list of Jim Cramer Talked About These 16 Stocks Recently. In this article, we are going to take a look at where Dell Technologies Inc (NYSE:DELL) stands against other stocks that Jim Cramer discussed recently.

During the episode, Cramer said that despite Dell Technologies Inc.’s (NYSE:DELL) strong performance, the company’s stock fell due to government pressure on contractors. He added that it could hurt its sales.

“There’s a larger issue here. While Wall Street remains constantly optimistic that the government will do something good for private industry, our stocks keep getting walloped. Case in point: Dell. Now, I loved the quarter Dell reported last Thursday. It was huge, and the buyback was incredibly aggressive. This company’s a true believer in itself, which is good for Dell…. But on Friday, the stock actually went down.

One possible reason, the government’s General Services Administration is trying to put the squeeze to federal contractors, including Dell. Quoting the Wall Street Journal, the GSA is “asking executives to justify their work and find areas to cut”. Do you know how many of these federal contractors buy their PCs and servers from Dell? It’s definitely not a small number… Now, I think Dell’s doing tremendously, but if the government keeps cutting back on its tax spending, that’s going to hurt them too.”

A team of IT experts discussing the latest network security trends over a laptop screen.

Dell (NYSE:DELL) provides a wide range of technology products and services, including computing devices, storage systems, networking solutions, and support services.

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Disclosure: None. This article is originally published at Insider Monkey.