Why Dell Technologies Stock Fell Friday

What happened

Shares of information technology and computer systems company Dell Technologies (NYSE: DELL) took a hit on Friday, falling as much as 14%. As of 2:30 p.m. EDT, the stock was down 10.2%.

The stock's decline is likely due to the company's worse-than-expected top-line growth.

So what

Dell reported first-quarter revenue of $21.9 billion, up 3% year over year. Non-GAAP revenue was $22 billion, up 2% year over year. On average, analysts expected the company to report revenue of $22.3 billion for the quarter.

Non-GAAP earnings per share for the period were $1.45, well ahead of the $1.22 analysts were looking for.

A decline in the company's server business weighed on Dell's results. "Clearly the U.S.-China trade tensions are a bit of overhang on the (servers) business," said Dell CFO Thomas Sweet in an earnings call with investors, according to Reuters.

Servers and networking revenue in the company's infrastructure solutions group segment fell 9% year over year during the quarter.

Now what

Dell Technologies' products and operations vice chairman Jeff Clarke remained optimistic about the company's potential.

"We're in the middle of a technology led investment cycle that's fueled by the explosion of data," Clarke said. "No one is better positioned to deliver the solutions customers need to grow in the data era."

10 stocks we like better than Dell Technologies Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Dell Technologies Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.