Hewlett Packard Enterprise (HPE) CEO Meg Whitman Interview

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Hewlett Packard Enterprise (HPE) CEO Meg Whitman sees consolidation accelerating in the information technology outsourcing business

“This transaction unlocks value for both companies.  The new post-merger enterprise company will be a pure play industry leader which is important because I think the industry is going to consolidate and it’s important to get on the front of consolidation rather than the back end of consolidation.”

Hewlett Packard Enterprise (HPE) CEO Meg Whitman thinks her stock is undervalued

“There’s incredible value in our stock price.  As you know, Hewlett Packard Enterprise trades at a lower multiple than our competitors.  We are beating the competition now which was not true 4 years ago.  If you look at this most recent quarter, our networking business grew 18% while Cisco’s shrunk 3%.  We have gained share in external disk storage for 2 straight years while IBM, Dell, & EMC have all lost share.  We’ve gained market share in servers overall especially in density optimized and rack.  I feel very good about our core business.  We use a returns based capital allocation strategy so we look at all different ways to deploy our capital and right now we think our shares are a good buy and that we ought to continue to buy shares.”

 

Source: http://video.cnbc.com/gallery/?video=3000520536

May 25, 2016