Tech Winners & Losers: Hewlett-Packard

Tech stocks were down Tuesday led by Hewlett-Packard after it announced a $13.9 billion merger with services company Electronic Data Systems.

Shares of Hewlett-Packard(HPQ Quote - Cramer on HPQ - Stock Picks) fell $3.29, or 7%, to $43.54 after the company announced that it will merge with Electronic Data Systems(EDS Quote - Cramer on EDS - Stock Picks) in a $13.9 billion deal. EDS was valued at $25 a share by H-P.

The merger would make the combined entity the No. 2 player in the consulting and technology services market after IBM(IBM Quote - Cramer on IBM - Stock Picks). EDS gained 35 cents, or 1.4%, to $24.42.

Shares of Dell(DELL Quote - Cramer on DELL - Stock Picks), which competes with HP in the PC business, rose 52 cents, or 2.7%, to $19.90 on the news of the HP-EDS deal.

Wireless broadband service provider Clearwire(CLWR Quote - Cramer on CLWR - Stock Picks) added 49 cents, or 3.8%, to $13.24 though the company posted a wider-than-expected first-quarter loss.

Still, Clearwire investors remained optimistic because of the company's plans with Sprint Nextel(S Quote - Cramer on S - Stock Picks) for a $14.5 billion WiMax merger deal.

Mobile games provider Glu Mobile(GLUU Quote - Cramer on GLUU - Stock Picks) gained 24 cents, or 5.8%, to $4.35 following its first-quarter results. Revenue in the quarter was $20.6 million vs. $15.7 million the year before.

Glu posted net loss of $6 million vs. net loss of $764,000 a year ago. Excluding charges it broke even on earnings compared with a loss of 9 cents a share, the year before. Analysts were expecting revenue of $19 million and a loss of 17 cents a share.

For fiscal 2008, Glu guided revenue in the range of $96.5 million and $100 million, higher than analysts' expectations of $92.17 million. The company said it expects earnings, excluding charges, to range between 19 cents and 22 cents a share for the year.

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