Hewlett Packard Enterprise Co (NYSE:HPE, ETR:2HP) shares were up nearly 4.3% on Tuesday afternoon after it attracted a more than $1.5 billion investment from activist hedge fund Elliott Investment Management.
The move follows a tough stretch for HPE, whose stock has fallen over 30% in the past year.
While Elliott’s exact intentions remain unclear, it's known for driving strategic shifts at major tech companies like Salesforce, SAP, and Citrix.
HPE has struggled recently, reporting disappointing Q1 results and issuing weaker guidance for the rest of the year. Analysts flagged poor execution, shrinking margins, and lower free cash flow as major concerns.
The company also announced it would cut 5% of its workforce—about 2,500 jobs—to streamline operations.
HPE, which split from HP Inc in 2015, has pursued growth through acquisitions, including Nimble Storage, Cray, and Juniper Networks.
The Juniper deal, however, is currently on hold due to an antitrust challenge from the US Justice Department.