Hewlett Packard's New Target

And, Unity Software's massive layoff.

Today is Tuesday, January 9, 2024.

The Early Bird Index today is 63.67.

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Hewlett Packard's New Target

Technology company Hewlett Packard Enterprise (NYSE: HPE) might try to acquire an artificial intelligence-related company.

Details: The Wall Street Journal reported late Monday that Hewlett Packard is in advanced talks to buy the AI networking company Juniper Networks (NYSE: JNPR) for $13 billion. Assuming the talks don’t fall apart, the report said that a deal could be announced as soon as this week.

Stock Price: Juniper Networks jumped 22.3% in after-hours trading due to the report. The news sent shares of Hewlett Packard down 7.67%.

Background: Hewlett Packard is considered to be a dinosaur tech company, lagging behind innovative competition.

Powering the Story: The deal would help Hewlett Packard catch up in the AI race.

Final Thoughts: Hewlett Packard’s stock has struggled in the past year. It needs to catch up to the tech competition.

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Notable Earnings Today: Tilray (Nasdaq: TLRY), Acuity Brands (NYSE: AYI), AZZ (NYSE: AZZ), TD Synnex (NYSE: SNX), WD-40 (Nasdaq: WDFC), Albertsons (NYSE: ACI), PriceSmart (Nasdaq: PSMT), Neogen (Nasdaq: NEOG), Saratoga Investment (NYSE: SAR), SMART Global (Nasdaq: SGH), E2open (NYSE: ETWO), Aehr Test Systems (Nasdaq: AEHR), CalAmp (Nasdaq: CAMP), MSC Industrial Direct (NYSE: MSM).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Zalat Pizza (StartEngine), Sway (SMBX), Eunoia (SMBX).

Notable Economic Events Today: Exports /  Imports / Trade Balance (8:30 a.m. ET), Atlanta Fed GDPNow (11:30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Unity Software's Massive Layoff

Video game software development company Unity Software (NYSE: U) ticked up by 3.64% in after-hours trading after announcing plans to cut 25% of its workforce.

Details: About 1,800 workers will be cut from the company. Unity said that it “cannot reasonably estimate the costs and charges in connection with this reduction,” which might include severance payments. Most of the costs will occur during this quarter.

Background: The layoff follows months of mixed financial results for Unity after the company clashed with developers due to fees. In November, CEO Jim Whitehurst said that the company would undergo a “reset.”

Stock Price: In the past 12 months, Unity’s stock is up 33%. In the last 30 days, the stock is up 20%.

Final Thoughts: Is this a sign that the video game industry is struggling? Maybe, but it’s certainly a sign that Unity Software has problems.

Bitcoin ETF Decision Coming Soon

The price of Bitcoin jumped 7% on Monday as the world awaits an upcoming decision from the U.S. SEC about the potential approval of spot Bitcoin ETFs (exchange-traded funds).

The Latest: A CoinDesk report late Monday said that the SEC sent comments to a set of potential issuers of spot bitcoin ETFs. An approval decision could come any day.

Final Thoughts: Approval of a spot Bitcoin ETF would give traditional investors in the U.S. more opportunities to directly invest in cryptocurrency.

Swipe Right: Tinder Owner Match Draws Elliott Investment (The Wall Street News)

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