That s not to say it isn t still a force in the tech sector, but let s be honest: HP, which split into HP Inc. and Hewlett Packard Enterprise last year, isn t the first company, or maybe even the second or third, that comes to mind when people discuss who in the area is doing groundbreaking work that grabs the world s attention.And now, with Hewlett Packard Enterprise spinning off its enterprise services business and merging that with Computer Sciences in an $8.5 billion deal, there is going to be even less of the tech giant to go around.
But that s not necessarily a bad thing, at least in the minds of investors and those who follow Hewlett Packard on Wall Street.Hewlett Packard Enterprise shares climbed almost 7 percent Wednesday after the company announced the enterprise-services spinoff, and released its fiscal second-quarter results after the close of trading Tuesday.
The company reported a profit of 42 cents a share on $12.71 billion in revenue, while analysts surveyed by Thomson Reuters had forecast Hewlett Packard Enterprise to earn 42 cents a share on sales of $12.34 billion.Several analysts who follow Hewlett Packard Enterprise said the companies results showed that Chief Executive Meg Whitman isn t backing away from her efforts to streamline the company and focus on its strengths.
At Morgan Stanley, analyst Katy Huberty said spinning off its services operations allows Hewlett Packard Enterprise to focus its hardware and server offerings on new growth markets such as private cloud computing.And by slimming down, there s a sense that Hewlett Packard Enterprise may just be able to turn things around by emphasizing the business-computing industry that built HP into the titan it used to be.Middle Innings:Back In The Saddle: The bidding for Yahoo s Internet business goes on, and it appears that another telecom giant wants in on the action.According to Bloomberg, AT has made a bid for the Yahoo business, and now represents a rival to Verizon, which many Yahoo watchers viewed as the leading candidate in the buying process.
Needless to day, Netflix, in particular, doesn t like the idea, and says it already invests millions of euros into making shows in Europe.Bottom Of The Lineup:Here s a look at how some leading Silicon Valley stocks did Wednesday…Movin On Up: Gains came from Nimble Storage, Oclaro, Harmonic, GoPro and Zeltiq Aesthetics.In The Red: Decliners included Yahoo, Rovi, 8 8, Ixys and Rambus.The tech-focused Nasdaq Composite Index rose 0.7 percent to 4,894.The blue chip Dow Jones Industrial Average climbed 0.8 percent to 17,851.And the broad-based Standard & Poor s 500 Index rose 0.7 percent to end the day at 2,090.Quote Of The Day: We are the defending champs.
— Golden State Warriors coach Steve Kerr, following the Warriors second-straight loss to Oklahoma City, which put the Warriors in a 3-1 hole and needing to win three games in a row to stay alive in the NBA playoffs.Sign up for the 60-Second Business Break newsletter at www.siliconvalley.com.Photo: Hewlett Packard Enterprise CEO Meg Whitman.