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Dell, GitLab Surge on AI Optimism; MongoDB Plummets Despite Strong Results
Technology stocks saw divergent moves in premarket trading Wednesday, with strong demand for artificial intelligence hardware boosting shares of Dell, while software firm MongoDB tumbled despite reporting better-than-expected quarterly results.
AI Demand Boosts Dell, GitLab
Dell Technologies (DELL) shares climbed nearly 10% after the computer maker raised its annual revenue and profit forecasts. The company cited robust demand for its servers optimized for artificial intelligence, underscoring the ongoing corporate investment in AI infrastructure.
The positive sentiment extended to other hardware providers, with Hewlett Packard Enterprise (HPE) shares rising 4.7% ahead of its own quarterly earnings report. Dell's upbeat outlook created a positive read-across for its rival, lifting investor expectations.
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In the software sector, GitLab (GTLB) shares surged 22% after the software development platform delivered a strong fiscal second-quarter report and raised its full-year guidance.
- Q2 Revenue: $286.3 million, an increase of 21% year-over-year.
- Q2 Adjusted EPS: $0.25, beating consensus estimates.
- Full-Year Outlook: Raised revenue guidance to between $1.129 billion and $1.133 billion.
AdMongoDB Tumbles Despite Earnings Beat
In a notable contrast, shares of MongoDB (MDB) plummeted 13.6% in premarket action. The decline occurred even after the cloud database company reported fiscal second-quarter results that surpassed Wall Street expectations.
MongoDB's revenue for the quarter grew 30% year-over-year to $771.8 million, while its adjusted earnings per share of $1.90 also topped forecasts. The sharp sell-off suggests investors may be concerned about the company's future outlook or valuation following a period of significant growth.
Other Notable Movers
- Uber Technologies (UBER): Shares rose 2.4% following a Bloomberg report that the company plans to reduce its global workforce by about 3,300 jobs as part of a broader restructuring effort.
- Sirius XM (SIRI): The stock gained 3.1% after analysts at Deutsche Bank upgraded the satellite-radio company to a Buy rating from Hold and raised their price target to $45 from a previous $31.
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