Ups And Downs: The Best And Worst Tech Stocks In The First Half Of 2017
Submitted by Rick Whiting on
Hewlett Packard Enterprise
CEO: Meg Whitman
Dec. 30, 2016: $23.14
June 30, 2017: $16.59
Change: -28.31%
In January HPE struck a deal to buy hyper-converged infrastructure pioneer SimpliVity for $650 million, an acquisition that was completed Feb. 17. HPE is integrating SimpliVity's hardware and software with HPE servers in a bid to grab a share of the fast-growing hyper-converged infrastructure market.
In March HPE signed an agreement to acquire Nimble Storage, a manufacturer of all-flash and hybrid-flash storage systems, for $12.50 per share or $1.0 billion in cash. HPE completed the Nimble acquisition April 17.
On April 3 HPE completed the spin-off of its HPE enterprise services business, which merged with CSC to create the new solution provider DXC. HPE said that deal would deliver approximately $13.5 billion in value to stockholders through an equity stake in DXC, a cash dividend payment, and DXC's assumption of debt and other liabilities.
The price of HPE's stock was adjusted at the start of trading April 3, from the $23.70 March 31 closing price to $18, to account for the 0.086 shares of DXC common stock shareholders received for each share of HPE stock.
For its fiscal 2017 second quarter (ended April 30), HPE reported revenue of $7.45 billion, down 12.5 percent from $8.51 billion in last year's second quarter. The company reported a $612 million loss for the quarter compared with net income of $320 million in the same quarter one year before.