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Hewlettpackard

Hewlett Packard Stock Remains Bearish After Earnings ReleaseYesterday, the tech giant released its quarterly earnings, showing that sales remained steady at $7.85 billion versus the expected $7.82 billion , while earnings per share came in at $0.49 , aligning with market expectations. However, what is currently weighing on the stock is the company's announcement of a new essential plan to lay off approximately 2,500 employees over the next 18 months. This event has created a low-growth outlook for the stock, which could sustain downward pressure in the short term. New Bearish Channel: Since the last days of January 2024, a significant bearish channel has been forming, which has now become more defined following the earnings report. The stock has started marking levels below $18 , reinforcing the downward trend. If the price continues to maintain a consistent bearish bias, the channel could extend further in the upcoming trading sessions. Possible Oversold Condition: The RSI line has consistently oscillated below the 30 level , indicating a clear oversold zone in the market. This may suggest an imbalance between buying and selling pressure in the short term. At the same time, the MACD histogram has begun showing bearish values that have not been seen since early February, demonstrating a steady acceleration of the price decline as selling pressure gains control. Additionally, the price has crossed below the lower Bollinger Band in recent oscillations, suggesting a potential exhaustion of the downward movement. All technical indicators signal a potential overselling scenario due to the rapid price drop. That said, this could lead to short-term buying corrections. Key Levels: $21.41: A key resistance zone aligning with the 100-period simple moving average. If the price moves above this level, it could pose a threat to the current bearish channel, potentially reviving buying momentum. $19.45: A nearby resistance level, aligning with October 2024 lows. This could be a tentative zone where potential bullish corrections might occur in the short term. $16.89 : A critical support level, marking the lowest levels of 2024. This could be the final barrier for the current bearish channel. If the price breaks below this level, it could reinforce the long-term bearish trend. By Julian Pineda, CFA – Market Analyst
NYSE:HPE
by FOREXcom
Hewlett Packard Enterprise (NYSE: HPE) Reports Q3 Earnings Hewlett Packard Enterprise (NYSE: NYSE:HPE ) recently reported its fiscal third-quarter earnings, showcasing a mixed bag of results driven by strong AI demand but tempered by other segment weaknesses. Despite beating revenue expectations, HPE's stock saw a dip in extended trading, reflecting a complex balance between growth potential and market skepticism. Fundamental Analysis 1. Strong Revenue Growth Driven by AI: NYSE:HPE reported a 10% year-over-year revenue increase to $7.7 billion, exceeding analysts’ expectations of $7.67 billion. A standout performer was the server segment, which surged 35% year-over-year to $4.3 billion, fueled by heightened investments in AI infrastructure. This growth underscores the growing importance of AI across industries, as enterprises ramp up spending on servers capable of handling complex tasks driven by AI and machine learning. 2. Adjusted Earnings Beat, But Diluted EPS Misses: While HPE’s adjusted earnings per share (EPS) of 50 cents surpassed estimates of 47 cents, the diluted EPS came in at 38 cents, missing forecasts compiled by Visible Alpha. The discrepancy highlights ongoing challenges in HPE’s operating structure, despite robust topline growth in key areas like AI servers. 3. Segment Performance – Mixed Signals: - Intelligent Edge and Cloud Segments: Both segments posted declines in year-over-year revenue, reflecting softness in traditional cloud services amid growing competition. However, HPE's financial services segment saw a modest 1% increase, adding some stability. - Raised Annual EPS Guidance: HPE adjusted its full-year EPS outlook upwards to $1.92 - $1.97, compared to the previous forecast of $1.85 - $1.95, demonstrating confidence in its earnings capacity despite headwinds. However, the unchanged revenue forecast of 1% to 3% indicates management's cautious approach amid economic uncertainties and competitive pressures. Technical Analysis Stock Price Reaction: Despite posting solid revenue growth, NYSE:HPE shares fell nearly 3% in extended trading, followed by a 2.29% drop in the pre-market session. This decline can be attributed to weaker performance in certain segments and an overall tepid market response to AI-linked stocks. Investors were also likely disheartened by the unchanged full-year revenue outlook, as market expectations for AI-focused companies remain elevated. Key Moving Averages: Technically, HPE is trading above its 50, 100, and 200-day moving averages, a positive indicator suggesting overall upward momentum in the stock's price action despite recent volatility. These moving averages are often used by traders to gauge the overall trend, and their alignment above current prices typically points to continued bullish sentiment. Support and Resistance Levels: The current support level is observed around $17.80, where the stock has found buying interest in the past. On the upside, resistance is seen near $19.50, a level that aligns with previous highs and could present a challenge in the short term given the mixed earnings outlook. Outlook and Conclusion HPE’s Q3 performance showcases the dual forces at play within the company. The strong surge in AI-driven server sales paints a promising picture for the future, particularly as businesses continue to invest heavily in AI technologies. However, the challenges in cloud and edge segments, coupled with a cautious revenue outlook, suggest that the company still faces significant hurdles. From a technical standpoint, the stock remains in a bullish zone, trading above key moving averages, which provides some support for investors betting on a turnaround in market sentiment. For long-term investors, HPE’s continued investment in AI infrastructure and revised profit outlook could present a buying opportunity, especially if the stock stabilizes above support levels. As always, potential investors should weigh the impressive AI-driven growth against the broader challenges within the company’s diverse business segments. While the AI tailwinds are undeniable, HPE's overall performance will hinge on its ability to adapt and grow other areas of its business to match the dynamic tech landscape.
NYSE:HPELong
by DEXWireNews
HPE Hewlett Packard Enterprise Company Options Ahead of EarningsIf you haven`t sold HPE before the previous earnings: Now analyzing the options chain and the chart patterns of HPE Hewlett Packard Enterprise Company prior to the earnings report this week, I would consider purchasing the 19usd strike price Calls with an expiration date of 2024-9-6, for a premium of approximately $1.07. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NYSE:HPELong
by TopgOptions
Hewlett Packard Solid Performance in FY 2023, Eyes AI GrowthHewlett Packard Enterprise (NYSE:HPE) reported strong performance in fiscal year 2023, with record-breaking non-GAAP diluted net earnings per share and free cash flow, according to the latest earnings call. The company's Intelligent Edge and HPC and AI segments, as well as the HPE GreenLake platform, drove its revenue and profit growth. HPE also raised its dividends for 2024 and expressed confidence in delivering value for shareholders in fiscal year 2024 and beyond. Key takeaways from the call: i. HPE achieved significant financial success in FY 2023, with its Intelligent Edge segment being the largest driver of revenue and profit growth. ii. The company ended the year with its highest gross margin, highest operating profit, and highest annual revenue in four years. iii. HPE's as-a-service orders grew 11% year-over-year in Q4, and cumulative as-a-service TCV reached nearly $13 billion. iv. The company generated $2.3 billion in free cash flow in Q4 and $2.2 billion in FY '23, surpassing their guidance. v. The company's FY '24 guidance includes 2% to 4% revenue growth in constant currency and a non-GAAP structural tax rate of 15%. vi. HPE plans to increase its dividend by 8% in FY '24 and aims to return 65% to 75% of free cash flow to shareholders between FY '24 and FY '26. HPE executives highlighted the strong demand for AI and the company's ability to capture it. The company's strategy is focused on driving top-line growth and expanding gross margins, with a non-GAAP gross margin of 34.8% in Q4. The company also reiterated its free cash flow guidance of $1.9 billion to $2.1 billion. HPE's CEO, Antonio Neri, discussed the company's collaboration with NVIDIA (NASDAQ:NVDA) and their joint plan to win in different market segments. He highlighted HPE's unique software for running supercomputers and AI systems at scale, including technologies for checkpointing and networking interconnect. Neri also mentioned their machine learning development environment and the use of NVIDIA's AI enterprise software and GPUs. HPE's revenue mix and the flexibility of its Gen 11 server, which can accept different processing units, were also discussed during the call. The company expects a quick recovery in its storage business in Q1, with improved revenue mix and moderation in operating expenses. The company's HP (NYSE:HPQ) Electra product experienced significant growth, although some revenue was deferred due to the subscription model. The company expressed confidence in its strategic investments and innovation, which have led to revenue growth and increased profit. As a result, HPE plans to raise its dividend for 2024. The call concluded with Neri expressing wishes for a fulfilling year-end and holiday season. Technical Analysis HPE is trading in the middle of its 52-week range and above its 200-day simple moving average. Investors are still evaluating the share price, but the stock still appears to have some upward momentum. This is a positive sign for the stock's future value.
NYSE:HPQLong
by DEXWireNews
HPE and Nvidia Team Up for Full Stack Generative AI SolutionHewlett Packard Enterprise (HPE) and Nvidia, two industry giants renowned for their cutting-edge technologies, have joined forces to build a groundbreaking full stack generative AI solution. This collaboration is set to revolutionize the way we approach AI, opening up new realms of possibilities and transforming industries across the globe. By combining HPE's expertise in high-performance computing and data center solutions with Nvidia's unmatched prowess in AI and accelerated computing, this dynamic partnership promises to deliver an all-encompassing AI infrastructure that is both powerful and efficient. The full stack generative AI solution will empower businesses to unlock the true potential of AI, enabling them to develop innovative applications, drive operational efficiencies, and gain a competitive edge in today's fast-paced market. This remarkable collaboration signifies a major milestone in the AI landscape, as it brings together the best of both worlds. HPE's deep-rooted experience in delivering scalable infrastructure solutions, coupled with Nvidia's groundbreaking GPU technology, will create a synergy that is simply unparalleled. Together, they will pave the way for groundbreaking advancements in AI research, development, and deployment. Now, you may be wondering, "How can I be a part of this exciting development?" Well, as an astute trader, you understand the value of seizing opportunities at the right time. Nvidia, being at the forefront of AI innovation, is poised for remarkable growth as a result of this collaboration. Therefore, I encourage you to consider adding Nvidia to your portfolio, as it has the potential to benefit significantly from this game-changing partnership. As we witness the birth of a transformative full stack generative AI solution, it is crucial to stay ahead of the curve and invest wisely. By positioning yourself strategically, you can potentially reap substantial rewards in the coming months and years. So, let's embark on this exhilarating journey together! Take a moment to evaluate the potential of Nvidia and consider adding it to your trading portfolio. As always, thorough research and analysis are key to making informed decisions, so ensure you carefully assess the opportunities and risks involved. If you have any questions or require further information, please do not hesitate comment below. I am here to assist you in any way I can. Wishing you an exciting and prosperous trading journey!
PYTH:NVDALong
by bryandowningqln
Profit Potential Alert: Shorting HPE at Supply Zone!HPE is revisiting the supply zone, marking an excellent selling opportunity. We're seizing this chance to go short at the current price. Our outlook suggests a significant price decline, with focus on two support levels: one around the double Fibonacci near $14.2 and the other at the key demand zone around $13.8. This aligns with the downtrend trendline, expected to serve as additional support. All details, including stop loss, take profit levels, and real-time updates on trade exit are shared in our channel.
NYSE:HPEShort
by CryptoPAMM
HP (NYSE: $HPQ) Snapped Up By Berkshire Hathaway! 💻HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktop and notebook personal computers, workstations, thin clients, commercial mobility devices, retail point-of-sale systems, displays and peripherals, software, support, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions, and services. The Corporate Investments segment is involved in the HP Labs and business incubation, and investment projects. It serves individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.
NYSE:HPQLong
by RedHotStocks
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