HP split triggers stock jump for HP printer and PC firm, not for HPE

Palo Alto-based HP and Hewlett Packard Enterprise both meant higher prices for investors on Monday, the first trading day after the two companies emerged from a split of the old Hewlett-Packard.

HP, trading with ticker symbol HPQ, jumped 13 percent on Monday.

Hewlett Packard Enterprise, using ticker symbol HPE, fell 1.6 percent.

“We are uniquely positioned to help companies” transform their technology systems, Meg Whitman, chief executive officer of HPE, said in an interview with CNBC on Monday. “We have hardware, software and services, and we are focusing on a small number of problems that are really important to customers.”

HP offers the legacy personal computer and printer business of the old Hewlett-Packard.

Hewlett Packard Enterprise operates the old company’s corporate hardware and services units.

“If HP can figure out how to turn around printers, the printer and computer business will be good,” said Rob Enderle, a San Jose-based analyst who tracks the technology sector. “Their problem is printers are a declining market, and printers are HP’s primary revenue and profit generator. The personal computer business could be doing great but they have to turn around printers.”

The future doesn’t seem nearly as optimistic for the new Hewlett Packard Enterprise, he warned.

It’s possible that the best outcome for the enterprise operation is to seek a buyer or merger partner at some point.

“It’s going to be tough for the enterprise division,” Enderle said.


Photo: Meg Whitman in 2012. (LiPo Ching/Mercury News archives)


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  • Robert Haragushi

    This is great news for HP and the industry as a whole. HP is a critical force with a great future ahead.

  • John Pombrio

    Ahem! I worked for the Test and Measurement side of HP for 20 years before it split off from the computer group. When Agilent was formed, it was the largest IPO in the history of Silicon Valley. Unlike its brother, Agilent and Keysight is making a steady profit and the stock is stable. And we missed the whole Carly experience!

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