Analysis provided by Theflyonthewall.com:Dell Inc. (NASDAQ:DELL) Q3 revenue was essentially in-line with expectations, but margins improved nicely, with gross margins jumping to 17% from 15.5%. Dell's shares surged on the report, up $2.33 Wednesday to $27.16 in very heavy trading.
Growth for Dell is coming from where it was supposed to originate from the Asia Pacific-Japan region. Dell reported 23% unit volume growth in the Asian region in addition to solid unit volume growth of 9% in Europe.
However, sales in the Americas were flat to down, which has been the case for a while. The high- growth days in the mature economies are over, especially from a revenue perspective.
There might be a good trade in Dell based on margin expansion, but investors should look at newer, high-growth companies, such as Google Inc. (NASDAQ:GOOG) and Interactive Corp. (IDC). It's important for traders and investors to remember that we are in the Internet era, not the PC era.