Tech Winners & Losers: Hewlett-Packard

Updated from 2:30 p.m. EDT with new stock prices

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) fell $2.56, or 5.5%, to $44.27 after the company announced that it will merge with Electronic Data Systems(EDS Quote) 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). EDS gained 26 cents, or 1.1%, to $24.34.

Shares of Dell(DELL Quote), which competes with HP in the PC business, rose 63 cents, or 3.3%, to $20.00 on the news of the HP-EDS deal.

Wireless broadband service provider Clearwire(CLWR Quote) added 85 cents, or 6.7%, to $13.60 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) for a $14.5 billion WiMax merger deal.

Mobile games provider Glu Mobile(GLUU Quote) gained 12 cents, or 2.9%, to $4.23 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.