Tech Winners & Losers: Hewlett-Packard - TheStreet

Tech Winners & Losers: Hewlett-Packard

HP shares fall after it announced its deal to acquire EDS.
Author:
Publish date:

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) - Get Report

fell $3.29, or 7%, to $43.54 after the company announced that

it will merge

with

Electronic Data Systems

(EDS)

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) - Get Report

. EDS gained 35 cents, or 1.4%, to $24.42.

Shares of

Dell

(DELL) - Get Report

, 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)

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) - Get Report

for a $14.5 billion WiMax merger deal.

Mobile games provider

Glu Mobile

(GLUU) - Get Report

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.

Sirius

(SIRI) - Get Report

satellite radio shed 4 cents, or 1%, to $2.84, a day after the company reported first-quarter revenue

below Street's expectations

.

Sirius reported a loss of $104.1 million, or 7 cents a share, in the first quarter, lower than a loss of $144.7 million, or 10 cents a share, the year before. Revenue rose 33% to $270.4 million. Analysts were expecting a loss of 7 cents a share on revenue of $271.5 million.

Video-games publisher

Electronic Arts

(ERTS)

shed $1.18, or 2.2%, to $53.09 ahead of the company's fourth-quarter earnings report.

Analysts are expecting $834.8 million in revenue during the quarter and break- even EPS. For the first quarter, analysts expect EA to report revenue of $592 million on a loss of 12 cents a share.