Top 3 Stocks to Watch: Archer Aviation, Dell Technologies, Nordstrom
Dell Technologies saw its stock dip over 10% after its quarterly earnings report. Investors are worried about weak guidance and cautious IT spending from major clients. Despite not beating earnings as much as in the previous quarter, Dell still had a strong quarter with a 9.5% increase in revenue year-over-year to $24.37 billion. This revenue surge was mainly thanks to AI performance and traditional servers. The Infrastructure Solutions Group (ISG) even saw a 34% revenue increase to $11.37 billion. Plus, server and networking revenue shot up 58% to a record $7.36 billion. Even with these successes, Dell expects some short-term challenges from their enterprise and large clients who are being cautious with IT spending. However, Dell is looking forward to a rebound in demand next year.
Archer Aviation Inc. is soaring high, with shares jumping 10% to hit all-time highs. Archer is working on electric vertical takeoff and landing (eVTOL) aircraft that can revolutionize urban air mobility, providing a sustainable transportation solution. The stock’s rise followed news of ARK Innovation fund investing in Archer. This happened right after a significant ruling from The FAA on the classification of eVTOL aircraft, paving the way for futuristic transportation options. With a bullish trend continuing, Archer’s stock is forecasted to stay strong with a target of $12.
Nordstrom had a tough day in the market, with shares dropping over 8%. The luxury department store chain experienced sluggish sales towards the end of October, clouding expectations for the holiday season. While Nordstrom did well in Q3 earnings, with improved margins due to less discounting, their revised guidance for fiscal 2025 has made investors wary. The entire department store sector is facing challenges due to consumer spending constraints, as seen with other retailers like Kohl’s and Macy’s. Nordstrom’s stock has been quite volatile, and with high-income households pulling back early on spending, a bearish bias remains for the company as they navigate 2025.
