The DoJ settled a lawsuit challenging Hewlett Packard's acquisition of Juniper Networks
Tech stocks Hewlett Packard Enterprise Co (NYSE:HPE) and Juniper Networks Inc (NYSE:JNPR) are both rallying this morning, after the U.S. Department of Justice (DoJ) settled its lawsuit challenging the former's $14 billion all-cash acquisition of the latter.
The settlement requires that the merged company divests of HPE's Instant On wireless networking business and license the source code for Juniper's Mist artificial intelligence (AI) software used in its products.
HPE was last seen up 13.3% to trade at $20.69, gapping to its highest levels since February. The move also has shares eyeing a close above the 320-day moving average for the first time since March, and moving away from an extended consolidation at $18. The stock is less than 3% below both its year-to-date and year-over-year breakeven levels.
JNPR is up 8.4% at $39.90, breaking into positive territory for 2025 and hitting fresh 14-year highs. Should this price action hold, the equity is on track for its best single-session gain since January 2024.
Options bulls are targeting both stocks after the news. So far, HPE has seen 53,000 calls exchanged -- 9 times the intraday average -- in comparison to 11,000 puts, with the most activity at the July 21.50 call, where positions are being opened. Juniper stock has seen 7,332 calls cross the tape -- 6 times the call volume typically seen at this point. The July 40 call is the most popular JNPR contract, with new positions being opened there.