The day after “Liberation Day,” when the U.S. introduced tariffs hurting Vietnam (VNM) the most, Three stocks are around 18% off.
Dell Technologies (DELL) lost 18.99% to close at $77.23. It fell alongside HP (HPQ), losing 14.71% in Thursday’s trade. Hardware companies face a near-halt in sales as tariffs raise costs. Unlike software firms, they have a depreciation value associated with their hardware inventory. Sales will weaken as consumer sentiment falls. People will delay computer purchases. Corporations will cut enterprise server spending amid an uncertain economy.
Watch out for a cut in spending on AI-related projects that require expensive servers. Western Digital (WDC) lost 18.26% to close at $34.15, a new 52-week low. Short sellers hold a 9.63% short interest against WDC stock. Markets are anticipating that demand for storage will weaken.
Micron (MU), a memory supplier, closed down by 16.09%. Citi (C) analysts are forecasting that Micron, Broadcom (AVGO), and On Semiconductor (ON) cannot avoid higher costs from tariffs. This is due to their complex supply chain.
In retail, Best Buy (BBY) fell by 17.84% to close at $62.22. Retailers should expect consumers to delay buying nice-to-have goods, such as televisions and electronics. Investors viewed Coca-Cola (KO) as a defensive holding. KO stock touched a new 52-week high yesterday.
