HP Enterprise shares fall as dull forecast fuels fears of slowing demand

Shares of Hewlett Packard Enterprise Co slumped more than 10% on Wednesday as its lackluster revenue forecast fanned worries of a slowdown in cloud spending this year.

The company was set to shed nearly $2 billion in market value if losses hold through the session. They have lost about 3% this year as of last close, failing to benefit from a broader rebound in tech stocks.

Brokerages expect economic uncertainty to weigh on demand for HPE’s server and storage systems and led six analysts to cut their price target. Their median view fell to $17, which is about 10% higher than the last closing price of $15.52.