HP spinoffs look to AI for growth

Article Excerpt

On November 1, 2015, the old Hewlett-Packard Co. split into two firms—HP Inc. And Hewlett-Packard Enterprise. For every share they held in the old HP, shareholders received one share in each of the new companies. HP is now up over 150% since the split, while HP Enterprise has gained 95%. We still like both, particularly as they focus on artificial intelligence (AI) applications, but rising inflation and interest rates could prompt consumers and businesses to slow new spending on technology. HP INC. $31 is a hold. The company (New York symbol HPQ; Manufacturing sector; Shares outstanding: 986.0 million; Market cap: $30.6 billion; Dividend yield: 3.4%; Takeover Target Rating: Medium; www.hp.com) is a leading maker of personal computers and printers. In August 2022, HP paid $3.3 billion for Plantronics Inc. Operating as Poly, that firm makes videoconferencing products such as cameras and headsets. However, demand for new computers and printers continued to drop as the pandemic ended and offices and schools re-opened. In HP’s fiscal 2023 second quarter,…