May 31 (Reuters) - Shares of Hewlett Packard Enterprise Co (HPE.N) slumped more than 10% on Wednesday as its lackluster revenue forecast fanned worries of a slowdown in cloud spending this year.
The company was set to shed nearly $2 billion in market value if losses hold through the session.
Brokerages expect economic uncertainty to weigh on demand for HPE's server and storage systems and led six analysts to cut their price target.
Faced with the possibility of a recession, businesses have dialed back cloud spending and delayed large orders, sparking a slump in the tech sector after the pandemic-led boom.
That is lower than the average of 17.1 for the tech sector, according to Refinitiv.
Persons:
Shejal Ajmera, Samrhitha
Organizations:
Hewlett Packard Enterprise Co, Barclays, Hewlett Packard Enterprise, Thomson
Locations:
India, Bengaluru