The era of DEI (diversity, equity, and inclusion) continues to end. On November 26, Walmart (WMT) said it would scale back some of its DEI initiatives.
Walmart’s decision benefits shareholders. The firm will concentrate its efforts on growing the business instead of allocating resources for DEI investments. For example, it will stop participating in a corporate equality rating system. It will also cut its $100 million support for the Center for Racial Equity.
Firms pulling back from DEI include Lowe’s (LOW), Harley-Davidson (HOG), Polaris (PII), John Deere (DE), and Tractor Supply (TSCO).
HP Inc. (HPQ) reported weak Q4 profits on Tuesday. Despite its attempt to market PCs as AI-powered ones, demand did not improve enough. Global shipments fell by 2.4% Y/Y to 68.8 million units. For Q1, it expects an EPS of between 70 cents and 76 cents. Analysts expected an 85-cent EPS.
Dell also reported weak results. It reported revenue rising by 10% to $24.4 billion. However, PC sales fell by 1% to $12.1 billion. The industry is unable to rebound from a pandemic-driven increase in computer sales.
Chip stocks fell ahead of HP and Dell’s reports. AMD (AMD), Intel (INTC), Micron (MU), and On Semiconductor (ON) will trade lower today. The sector may no longer rely on AI euphoria to lift the stock price.
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