Stock Movers Dell Sinks, Caterpillar Falls, Ulta Tumbles on Cooling Consumer Spending
Aug 29, 2025
Dell's shares took a hit as unsatisfactory sales of AI servers led to lower profit margins, despite an optimistic annual outlook. Caterpillar faced a stark warning about rising tariffs, which could cost the company up to $1.8 billion this year. Meanwhile, Ulta's stock tumbled amid caution from consumers, casting doubt on its revised sales forecasts in the beauty market. These struggles highlight the shifting dynamics of consumer spending and external economic pressures impacting major players in diverse sectors.
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Dell's AI Server Slowdown
- Dell reported a sharp drop in AI server orders, booking $5.6 billion versus $12.1 billion previously.
- Operating margin missed estimates at 8.8%, creating investor concern despite raised annual outlook.
Margins Will Make Or Break Dell's Story
- Analysts say margin trajectory will be a key watch point to validate Dell's recovery story.
- Robust full-year revenue guidance could support medium-term growth if server demand rebounds.
Tariffs Hit Caterpillar's Profits Hard
- Caterpillar warned tariffs may cut as much as $1.8 billion from full-year results and $500–600 million in Q3.
- Bloomberg Intelligence flagged tariffs as a larger-than-expected drag on profit and margins this year.