Up until recently, stock markets did not appreciate the upside in Hewlett Packard Enterprise (HPE). That changed in the last two quarters. Since bottoming in April, the firm has posted two strong quarterly earnings results.
In the third quarter, HPE posted strong AI server revenues of $1.6 billion, orders of $2.1 billion, and a backlog of $3.7 billion. CFO Marie Myers said that closing the Juniper acquisition was a critical milestone. It changed the shape of its portfolio positively. Expect HPE to realize many growth opportunities ahead in the SAM (software asset management) space.
DocuSign (DOCU) continued trending higher after posting strong Q2 results. It earned $0.92 in EPS (non-GAAP) on revenue of $880.64 million (+8.8% Y/Y).
CoreWeave (CRWV) is under tremendous selling pressure. Short-sellers hold a 15.4% short interest in the stock. Shares peaked at $187 and have lost more than half their value since June.
FT reported that JPMorgan Chase (JPM) and Goldman Sachs (GS) arranged for an over $1 billion block trade in mid-August. That would free 84% of its shares for public trading. The firm’s director, Jack Cogen, sold almost $300 million worth of shares.
Investors may consider Nebius (NBIS), which has a strong management team. Although shares trade at an 82 times forward P/E, the firm posted strong Q2 results. Revenue grew by over 600% to $105.1 million.
