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Luke Kawa8/21/25

HP Enterprise jumps on upgrade to “buy” from Morgan Stanley

Shares of HP Enterprise are up nearly 3% as of 10:10 a.m. ET, the second-best-performing stock in the S&P 500, after the server and networking company got a fresh vote of confidence from Wall Street.

Morgan Stanley analyst Erik Woodring, who took over coverage of HPE starting with this report, raised the stock to “overweight” (or buy) from “neutral” and hiked the price target to $28 from $22.

He’s optimistic on the company’s short-term results, and has a higher opinion than peers on how much HPE’s acquisition of Juniper Networks will bolster its networking business and offset any softness in the traditional server segment.

For enterprise hardware companies, “the July quarter setup is most favorable for overweight-rated HPE, as the stock remains the cheapest of the group (at 8.5x times our fiscal year 2026 EPS), AI expectations are low, and management should guide October quarter results decently ahead of consensus, which is yet to incorporate the Juniper Networks acquisition,” Woodring wrote. “As the market comes to better understand nearly half of HPE’s business is networking, inclusive of more AI exposure (Juniper in xAI cluster), HPE’s multiple will re-rate above the current 8x multiple.”

HP Enterprise is slated to release quarterly results on September 3.

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Stocks notch new closing high, buoyed by end-of-war optimism and strong bank earnings

The S&P 500 and Nasdaq 100 both notched new record closes as President Trump said the Iran war was “very close to over” and as strong earnings from Morgan Stanley and Bank of America bolstered investor sentiment.

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Oracle, Microsoft power battered software stocks toward best 3-day stretch in almost a year

Software shares are rising again early Wednesday, putting the widely watched iShares Expanded Tech Software ETF on track for its best three-day stretch in almost a year.

So far this week, Oracle is up more than 20%, Microsoft is up over 9%, and both ServiceNow and Datadog have gained more than 12%.

Intuit, CrowdStrike, Autodesk, and Atlassian were also among the software shares rising Wednesday after taking lumps on worries about AI disruption earlier this year.

Why the rebound? Mean reversion is a powerful force in markets, and some of these shares could simply be enjoying an overdue snapback.

Bloomberg suggests there’s some “bottom fishing” going on, with investors finally deciding that the price for these still highly profitable, cash flow-positive companies has fallen low enough to make them a compelling bargain.

Pat Tschosik, chief thematic strategist at research firm Ned Davis, told Sherwood News that the market may have been too panicky about software stocks as a whole, slamming the shares of software companies that could survive and thrive in the AI era along with those doomed to disruption.

Determining the difference between the winners and the losers will take a look at the fundamentals of individual companies.

“Somebody who does the homework is going to make a lot of money in these stocks,” he said.

Wall Street Goes Bottom Fishing in Beaten-Down Software Stocks

Wall Street Goes Bottom Fishing in Beaten-Down Software Stocks

So far this week, Oracle is up more than 20%, Microsoft is up over 9%, and both ServiceNow and Datadog have gained more than 12%.

Intuit, CrowdStrike, Autodesk, and Atlassian were also among the software shares rising Wednesday after taking lumps on worries about AI disruption earlier this year.

Why the rebound? Mean reversion is a powerful force in markets, and some of these shares could simply be enjoying an overdue snapback.

Bloomberg suggests there’s some “bottom fishing” going on, with investors finally deciding that the price for these still highly profitable, cash flow-positive companies has fallen low enough to make them a compelling bargain.

Pat Tschosik, chief thematic strategist at research firm Ned Davis, told Sherwood News that the market may have been too panicky about software stocks as a whole, slamming the shares of software companies that could survive and thrive in the AI era along with those doomed to disruption.

Determining the difference between the winners and the losers will take a look at the fundamentals of individual companies.

“Somebody who does the homework is going to make a lot of money in these stocks,” he said.

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Robinhood, Webull gain as SEC approves removal of day trading limit for small investors

Shares of Robinhood Markets and Webull are surging in premarket trading after the US Securities and Exchange Commission gave the green light to removing a rule that had impeded small traders from day trading.

The pattern day trading rule will no longer bar traders from making more than four day trades over a five-day period if their margin account has less than $25,000. The changes were initially proposed by the Financial Industry Regulatory Authority. Under the SEC order published Tuesday after the close of regular trading, all traders, regardless of account size, will just need to have enough in their margin account to cover their exposure.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Allbirds, the quarter-zip of footwear, is leaving shoes behind to become an AI infrastructure company

Allbirds shares rocketed higher on Wednesday.

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