What Happened?
Shares of enterprise technology company Hewlett Packard Enterprise (NYSE: HPE) fell 3.4% in the afternoon session after the company was removed from Evercore ISI's "Tactical Outperform" list following a recent earnings report that missed revenue expectations. The action from Evercore ISI came after the company reported October quarter revenue of $9.679 billion, falling short of the $9.901 billion analysts had expected. Management pointed to several factors for the miss, including delayed shipments of AI servers, effects from a U.S. federal government shutdown, and weaker storage sales. Compounding the issue, the company's revenue guidance for the next quarter also disappointed investors by coming in below market forecasts. Despite removing the stock from its short-term list, Evercore ISI kept its main "Outperform" rating, signaling a more positive long-term view.
The shares closed the day at $24.53, down 2.9% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hewlett Packard Enterprise? Access our full analysis report here.
What Is The Market Telling Us
Hewlett Packard Enterprise’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 3% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Hewlett Packard Enterprise is up 14.2% since the beginning of the year, and at $24.53 per share, it is trading close to its 52-week high of $26.25 from October 2025. Investors who bought $1,000 worth of Hewlett Packard Enterprise’s shares 5 years ago would now be looking at an investment worth $2,045.
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