Why Dell Technologies Rose 39.1% in 2020
Shares of Dell Technologies (NYSE: DELL) rose 39.1% in 2020, according to data provided by S&P Global Market Intelligence. The technology conglomerate, which makes servers for businesses, laptops and desktops for businesses and consumers, and owns almost 81% of enterprise software company VMware (NYSE: VMW), had a surprisingly good year amid COVID. That was due partly to this year's laptop-buying binge, but also a bit of financial engineering announced over the summer that could unlock tremendous value.
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Back in July, Dell announced its intention to eventually spin off its stake in VMware in an effort to unlock value. Incredibly, in the early part of the year, all of Dell was valued below the market value of its stake in VMware alone, some of which is publicly traded, as software stocks surged and more cyclical hardware stocks fell immediately following the pandemic.
Source Fool.com
