Shares of Dell Inc. plunged to their lowest level in nearly five years Friday after they slashed their second-quarter earnings outlook below Wall Street's estimates blaming aggressive price cutting and a slowing global market. The sell-off wiped out nearly $5 billion of Dell's market value in a single day. And as usual, had all the analysts screaming that the “Dell Era” is over. These would be the same bozos who have over the years never failed to say there was no way Dell could maintain its rate of growth and profitability. Every time Dell has proved them wrong. I worked on the Dell account for many years and know that Michael Dell is one of the smartest CEO’s around, not to mention, a great believer in the power of advertising. And if you’re in the direct selling channel, you’d be dumb not to. Even though it will be tough sledding for a while, when Microsoft finally gets off its butt and launches Vista things could turn around. Also watch out for a concerted ad blitz at the same time. Like I said, unlike a lot of CEO’s, Michael truly believes in advertising. Wouldn’t you if it had helped make you a billionaire?
One of my ads from the Compaq bashing days!
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