Hewlett Packard shares are trading lower after Barclays downgraded the stock from Overweight to Equal-Weight rating and lowered its price target from $83 to $77.

Why Hewlett Packard Enterprise Stock Plunged 20% This Week

Hewlett Packard Enterprise stock fell 20.2% this week after Barclays downgraded the company, citing concerns that corporate AI hardware adoption is taking longer than expected. The analyst noted that only 5% of IT budgets are currently allocated to AI, with recent server revenue gains driven by higher component costs rather than increased unit shipments. Despite the downgrade, the author argues HPE's networking business, GreenLake subscription service, and strong backlog position it well even if enterprise AI spending slows.

Barclays Downgrades Hewlett Packard to Equal-Weight, Lowers Price Target to $77

State Street, Fastenal And Other Big Stocks Moving Lower In Wednesday’s Pre-Market Session

U.S. futures were mixed. State Street fell 6.4% after missing sales estimates, while Biomea Fusion, Skydance and other stocks slid premarket.