Dell Inc. (DELL): Should Investors Take Michael Dell’s Deal?

Also looking attractive is Google Inc (NASDAQ:GOOG). The company’s smartphone Android operating system is leading the market with a 52% share. In 2012, Google took home $4.61 billion in mobile advertising revenue, more than half in all the world.

JPMorgan Chase & Co. (NYSE:JPM) recently boosted its price target on the Internet giant to more than $1,000. With a benchmark of more than $1,000 per share, it became the tenth analyst to recommend such a lofty price. Better marketing results from Google Inc (NASDAQ:GOOG)’s search engine, optimism about the future of YouTube, and the potential for Motorola built android devices, were cited as reasons for the four-digit price target.

Dell’s Dilemma

The fading PC market is the reason behind Dell Inc. (NASDAQ:DELL)’s dismal performance and outlook. The company’s PC shipments fell 3.9% in second quarter and now finds itself in third place in the PC market with an 11.8% share. Lenovo, (16.7%), elbowed past Hewlett-Packard Company (NYSE:HPQ) (16.3%), to take the top spot.

Michael Dell see’s potential in the company.  And that includes a shift in Dell’s business towards mobile devices and business software. He claims the only way to execute this shift is away from the pressure and eyes of shareholder scrutiny. But what about the investors who paid more than $14 for shares of Dell?

PCs will likely evolve, and that’s what Michael Dell envisions for his revamped company. While today’s PCs are “so yesterday,” future PCs could very well be the next hot device. But holding onto Dell Inc. (NASDAQ:DELL) in its present state is risky, and having a disgruntled leader at the helm doesn’t inspire much confidence. So perhaps its time shareholders reallocate their cash to better ideas.

The article Should Investors Take Michael Dell’s Deal? originally appeared on Fool.com and is written by Diane Alter.

Diane Alter has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Diane is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.