The rocky week for technology hardware and memory chip stocks continued on Wednesday. Shares of Dell Technologies (DELL) fell by 9.8%, erasing a slow uptrend that started on June 11.
Traders pulled their support on server supplier Dell, along with Hewlett Packard Enterprise (HPE) and HP Inc. (HPQ). They continued to reprice the impact of IBM’s (IBM) profit warning issued the day before. Nebius (NBIS), a hyperscaler, found support, but CoreWeave (CRWV), which has a 23.89% short against it, fell yesterday.
Investors need to watch the growing bearishness in memory chip stocks. Micron (MU) traded at a monthly low at around $904. Unfortunately, SK Hynix (SKHY), which is newly listed on Nasdaq (QQQ), fell by 9%. Their weak short-term performance could pressure the hardware sector.
In the fintech space, a report that deeply undervalued firm PayPal (PYPL) received a bid from Stripe. CNBC reported late morning yesterday that both Advent International and Stripe offered $60.50 a share for PYPL stock.
Expect suffering PYPL stockholders to reflect the deal. They will demand around $80/share, since it traded at that level last year. In 2025, PYPL stock traded near $100. And in 2022, the stock traded at over $260/share.
Traders who bought the stock might sell their position. They might bet that the deal would either not go through or that the company would not sell at the $60.50 price.
