Alright, let’s get weird with this write-up, shall we? So, you’ve got the Hewlett Packard Enterprise – or HPE if you want to be all acronym and chill about it – sitting over here in Minneapolis, freezing their collective keisters off, maybe, and making technology that supposedly links the world up in some kinda ethereal cloud network. Picture this: these folks are spinning off from HP Inc like it’s some messy celebrity breakup from way back in 2015 – HPQ keeps the laptops and printers like it’s going through a midlife crisis and needs meditation, and HPE gets servers and cloud stuff, clearly opting for the futuristic vibe, alright?
Now, HPE’s claiming they’re this edge-to-cloud whatever, making gadgets and gizmos for the world, plugging into artificial intelligence like it’s some sci-fi movie. They’re all about servers – that’s their bread-n-butter – 53.8% of their revenue gets gobbled from making these fancy boxes that hum away in some data center. But there’s a twist. Their Hybrid Cloud and Intelligent Edge segments are playing catch up like a toddler chasing after a rogue balloon. Meanwhile, HPE’s stock value is – wait for it – $19.88 billion, tossed around at $15 a share. Not chump change, but apparently the market gods ain’t impressed. They’re trading at less than 5x EBITDA, while Dell’s sittin’ pretty over 7x. Makes you scratch your head, right?
Enter stage left: Elliott Investment Management, the behind-the-scenes player with a flair for strategic activism, storming in with a 7.4% ownership stake. Elliott’s basically that buddy who gives you life advice, but actually backs it up with data and industry specialists instead of anecdotes from that one time in Cabo. There’s drama, though – they wanna beef up the board and steer things from a governance angle. Like, seek justice and achieve balance or whatever.
Things get spicy when HPE talks acquisitions – Juniper Networks, anyone? A $14 billion price tag all tangled up in legal tape because, hey, the DOJ thinks less competition’s a bad omen. HPE’s sitting at some crossroads, like a hero in a folktale, except with less mythical beasts and more market volatility. Block the deal, or don’t? Either way, Elliott’s hoping to sprinkle some boardroom magic and turn turmoil into solid wins.
And just to splash some more color on this narrative canvas, we’re eyeing those tariff winds blowing over from across the Pacific – HPE might just dodge that geopolitical bullet better than Dell, given they’re assembling servers south of the border in Mexico, while Dell’s hammering away over in China, where tariffs loom extra large and ominous.
Strap in, though! Big Ken Squire’s out to track shareholder ambitions, making moves through this 13D Activist Fund. If you need a hero in this tale, maybe he’s your dude, keen eyes watching the activist winds shift tides and turn tables.
So that’s the slice of corporate drama bakin’ in HPE’s oven. It’s got intrigue, potential, missteps, and boardroom jousts. Who said tech couldn’t be Shakespearean, huh?
