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HP’s stock rockets after Berkshire Hathaway reveals 11% stakeMarketWatchHP’s stock rockets after Berkshire Hathaway reveals 11% stakeShares of HP Inc. surged in after-hours trading Wednesday after Warren Buffett’s Berkshire Hathaway Inc. disclosed that it had taken a large stake in the Silicon Valley maker of personal computers and printers. Berkshire BRK.A, The stock rose nearly 10% in after-hours trading. “HP is committed to one of the largest share-repurchase programs (relative to market cap) within our coverage, so we think Berkshire’s involvement makes sense,” Evercore ISI analyst Amit Daryanani wrote in a note to clients. While he said he didn’t believe that Berkshire’s investment in HP would drive significant changes to HP’s business, he deemed the high-profile stake a “validation of HPQ’s strategy/capital return program,” noting that Berkshire began purchasing shares after HP announced plans to purchase the workplace-technologies company Poly for $3.3 billion late last month. “Specifically, we believe PC and consumer hardware spending will be pressured as supply improves and demand normalizes after two years of above-trend growth,” Morgan Stanley’s Erik Woodring wrote in explaining his March 31 downgrades of HP and Dell Inc. DELL, |
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