Once a firm that said artificial intelligence would drive sales, Hewlett Packard Enterprise (HPE) will open down by around 15% this morning. The firm posted first-quarter revenue growth of 16.1% Y/Y.
HPE achieved a 45% Y/Y growth in an annualized revenue run rate. However, it also posted cash flow from operations of $(390) million and free cash flow of $(877) million. In Q2, HPE is expecting up to $7.6 billion in revenue, below consensus estimates of over $7.9 billion.
Broadcom (AVGO) dropped by over 6% yesterday to close at $179.45. Its sale will end this morning. The firm posted GAAP net income of $5.503 billion. Non-GAAP EPS of $1.60 beat expectations. In Q2, Broadcom expects revenue of around $14.9 billion, over $200 million higher than expected.
In the advertising platform market, AppLovin (APP) continued to give up its post-earnings rally. APP stock peaked at over $500 but on Thursday, it dropped another 18.6%. At $259.63, the stock still faces selling pressure. Rumors circulated that the firm would sell its gaming unit to Tripledot Studios for $900 million. When the firm did not confirm any deal, the weak Nadaq markets pulled APP stock lower.
Your Takeaway
The technology-heavy Nasdaq is a forward indicator. The world economy is on the path to a downturn. Should a recession unfold by mid-2025, tech stocks will continue to trade lower.
