Dell (NYSE:DELL) stock is getting a boost on Thursday as investors react to recent news in the computer manufacturer market.
First off, note that Dell, alongside HP (NYSE:HPQ), was down yesterday on a report from Bloomberg. This report claimed that the two companies could be negatively affected by inflation as consumers change spending habits.
And as if that wasn’t enough, DELL stock also got hit by a downgrade from Goldman Sachs due to moderate demand from low-end customers. All of this resulted in the computer manufacturer’s shares taking a roughly 2% beating when markets closed on Wednesday.
Now DELL stock is heading higher despite there being no news specifically about the company. Instead, it’s heading higher in symphony with shares of HPQ stock. So what’s got investors excited about HP today?
The big news here is that Warren Buffett’s Berkshire Hathaway has taken a stake in HPQ stock. It’s no small stake, either. The firm purchased roughly 121 million shares with a $4.2 billion value. That gives it an 11% stake in the computer tech company.
While this news isn’t directly connected to Dell, it doesn’t change the fact that it’s a good sign for the company. The investment in rival HP means that Buffett expects growth from the company. With Dell offering more premium computers through its Alienware brand, it’s likely investors expect it to perform well too.
DELL stock is up 1.6% and HPQ stock is rising 17% as of Thursday morning.
Investors seeking more stock market news for today will want to stick around!
We’ve got all the latest stock coverage that traders need to know about for Thursday. Among them are Walmart (NYSE:WMT) stock rising, a further breakdown of the HP news, as well as this morning’s biggest pre-market stock movers. You can find all of this news at the following links!
More Thursday Stock Market News
- Why Is Walmart (WMT) Stock Up Today?
- Why Is HP (HPQ) Stock Up Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
