Hewlett Packard Enterprise (HPE) shares fell about 7.4% to $63.695 at 11:48 ET on October 14, after Barclays downgraded the stock to Equal Weight. The bank cut its price target to $77 from $83 but left its financial forecasts unchanged. The move questions how much investors should pay for HPE's growth story, not its earnings outlook. The share price sits 124.2% above GuruFocus's GF Value estimate of $28.41. Data-center networking revenue rose 112.2% year over year to $382 million, about 3.1% of quarterly revenue of $12.2 billion. The wider Networking segment brought in $2.9 billion at a 22% operating margin, against 17% for Cloud & AI. The next earnings report must show stronger evidence that the premium is justified.

TidalScale began with a vision to establish a new category of computing offering unprecedented scalability, flexibility, and ease of deployment for large memory systems.  This was accomplished by stitching together industry standard computers connected with Ethernet to create a virtual server of essentially any size.  We called this innovation Software-Defined Servers.  Along the way there were many additional innovations including the recently announced TidalGuard™ technology which allowed for the hot-swapping of computers, enabling nodes to be replaced at the first sign of impending failure – all while keeping the application up and performant.  This was just one of the 30 issued patents on our technology. A new chapter is unfolding for Software-Defined Servers as TidalScale’s technology and many key team members will now be a part of Hewlett Packard Enterprise. With HPE’s long history of innovation, current market-leading positions, and emphasis on culture and innovation, we couldn’t think of a better company to continue to forge the future for the technology and end-user value proposition. In addition to the dedication of our employees and support from investors, we want to thank our partners and customers for choosing our technology for their workloads.  And looking forward, we are excited to see how HPE takes Software-Defined Servers to the next level!  #softwaredefined # | 31 comments on LinkedIn