0858 ET - Hewlett Packard Enterprise's outlook is worrying as pricing discounts in its traditional server market compound with other challenges, say analysts at J.P. Morgan in a research note. The server and cloud-software company was already dealing with concerns about competition for AI servers and the impact of tariffs. Chief Financial Officer Marie Myers said pricing adjustments will be part of its mitigation strategy in light of the latest tariffs. "While the discounting-led headwinds the company is facing appear to be in some regards company-specific execution challenges... it raises concerns in relation to exacerbating an already aggressive pricing backdrop in the market which challenges profitability for not only HPE, but also peers," say the analystsShares tumble 17% to $14.82 premarket. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
March 07, 2025 08:58 ET (13:58 GMT)
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