ChatGPT and chatbots are the likely growth stories in the artificial intelligence boom. For the PC market, the “AI PC” gimmick already lost momentum.
HP Inc. (HPQ) posted third-quarter earnings that did not meet expectations. It earned $0.83 a share. Revenue topped $13.52 billion. For the fiscal year, HP cut its EPS range to $3.35 - $3.45. This is down from $3.30 to $3.60. The CEO did not explain the reason for the lowered outlook. CEO Enrique Lores only said that HP is proud of its next-generation AI PC lineup.
The DEI movement lost more steam on Wednesday. Lowe’s (LOW) and Ford (F) both said that they would scale back on their diversity, equity, and inclusion programs. Neither firm can afford DEI. Publicly traders have to maximize profit. If DEI does not increase profits, companies need to invest elsewhere.
In the cybersecurity sector, beware of CrowdStrike Holdings (CRWD). In the second quarter, it reported $1.04 a share. Revenue was $963.9 million.
CrowdStrike customers are highly likely to increase cybersecurity protection by diversifying their vendors. This would hurt the firm’s subscription revenue in the coming quarters. Still, the company offers Falcon Flex through a customer commitment package. The firm is committed to growth and innovation. It expects to reach $10 billion in annual recurring revenue by the end of FY 2031.
CrowdStrike would need to buy back shares to take advantage of a lower price.
