Jim Cramer Discusses These 10 Stocks & Says There’s “Pain” Ahead

2. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders In Q4 2024: 66

Hewlett Packard Enterprise Company (NYSE:HPE) is an enterprise computing hardware and software products provider. Cramer’s previous comments about the firm surrounded its multi-billion dollar bid to acquire Juniper Networks. He believes that the scrutiny surrounding the deal is unwarranted and is based on misconceptions about the business. Hewlett Packard Enterprise Company (NYSE:HPE)’s fiscal first quarter report sent the shares tumbling by 12% after its fiscal Q2 midpoint EPS guidance of $0.31 and $7.4 billion in revenue missed analyst estimates by a wide margin. Cramer aimed at the firm’s CEO:

“[HPE on a 52-week low] That was a terrible call. The conference call. Because Neri I think was way too bullish. When they start telling you everything is good, good, good, oh but we did have some 800 basis points of margin pressure. No, no you start with that call by saying, okay we don’t have the horses. And we’re gonna get ’em. But we don’t have the horses. You do not start optimistic. And I like Mr. Neri very much. But he was way too glib about the problems that are facing him. And he should have been more apologetic. About what he did.”

“Well, first he, tariff uncertainty. The other guys are killing him. They’re taking big share from him. He starts you know, he’s focused on that acquisition that I don’t think. . . .he starts with that. But he just says look I’m very proud of the quarter. I mean don’t be proud of a bad quarter. People see you as, listen to me, when you have a huge miss like he, when you have gigantic decline in gross margins, down 680 basis. Uh weak server numbers that were just terrible. You have big work reductions. Uh you have tariff uncertainty. It was a terrible quarter. Why not just say, you know what, we didn’t do a good job. And then I would say, okay well let’s work on that. You had to do layoffs, you’re biting the bullet, that’s terrific. But you can’t be glib. And I think part of the problem is he’s got that great optimistic nature. But sometimes you have to just you know what, we didn’t deliver. And you have to swallow your optimism and come in a little more humble.”