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Hewlett Packard Enterprise (HPE) shares are falling Tuesday after it initiated sales of $1.35 billion in convertible preferred stock to fund its purchase of Juniper Networks (JNPR), an all-cash acquisition valued at $14 billion.
Market Domination co-hosts Julie Hyman and Josh Lipton break down the story and eye moves in HPE stock.
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This post was written and updated by Luke Carberry Mogan.
All right, let's talk about Hewlett Packard Enterprise. Those shares are sliding after an announced a public offering of mandatory convertible preferred stock. Um, when you have more shares coming out there, it can dilute the value for existing shareholders. Why is Hewlett Packard Enterprise doing this? Well, it is buying Juniper Networks and so it is raising some cash in order to do that, but with the knock-on effect of the shares being down.
Yes, to pay related fees and expenses and if any proceeds remain thereafter for other general corporate purposes. Uh, remember HPE did recently report earnings results too duly. We broke those beat on the top and bottom line as pointed out, like rivals that had not been insulated to gross margin pressure from those AI servers. Stock now, by the way, now in the red year to date as well.
It is, and it announced that acquisition of Juniper, by the way, back in January.
14 billion I think, was that?
It was 14 billion. They could close at the end of this year or maybe early next year.
