Hewlett Packard Enterprise shares fell more than 23% during the week ending October 16. This decline represents the company's worst weekly performance on record.
Barclays triggered the selloff by downgrading HPE from Overweight to Equal Weight and cutting its price target. The downgrade raised questions regarding the sustainability of the company's hardware revenue growth.
Analysts expressed concern that sales figures may reflect high memory component prices rather than durable demand for enterprise AI solutions. The multi-day decline erased gains that previously pushed the stock to a 52-week high earlier in the month.
The market reaction highlights investor uncertainty regarding HPE's ability to maintain growth momentum in its core AI-related business.