Technology

Technology Sector Update for 09/08/2016: WDC, HPE, MSFT, AAPL, IBM, CSCO, GOOGL

Top Technology Stocks:

MSFT: -0.2%

AAPL: -0.3%

IBM: +0.01%

CSCO: +0.2%

GOOGL: flat

Technology shares were mixed in pre-market trade on Thursday.

In technology stocks news, Hewlett Packard Enterprise ( HPE ) was down 1.8% after the company late Wednesday confirmed earlier reports it will spin off and merge its non-core software assets with Micro Focus in a deal valued at $8.8 billion. Under the terms of the deal, the company will hold a 50.1% stake in the newly combined company and receive a $2.5 billion cash payment from London-listed Micro Focus. The combination will create one of the largest pure-play enterprise software companies with annual revenues of approximately $4.5 billion. The deal is slated to close by Oct. 2017.

The company also reported Q3 non-GAAP earnings of $0.49 per share, better than the analyst consensus of $0.45 per share on Capital IQ. Revenue was $12.2 billion, shy of expectations of $12.62 billion. For Q4, Hewlett Packard Enterprise expects non-GAAP EPS of $0.58 to $0.63, vs. the Street view of $0.60 per share. For FY 2016, the company is targeting non-GAAP EPS of $1.90 to $1.95 per share, vs. the analyst consensus of $1.87 per share.

And, Western Digital ( WDC ) was up 1.1% after it said that it has formed a new joint venture with Shenzhen-listed Unisplendour Corporation to market and sell Western Digital's data center storage systems in China. Unis-WDC Storage, which is owned 51% by Unis and 49% by Western Digital, will also invest in the development of new products and enhancements to Western Digital's products. The new entity will maintain a corporate headquarters and R&D facility in Nanjing, and a sales and marketing office in Beijing.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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