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HP Soars, Rackspace Dives: Tech Winners & Losers

Tickers in this article: HPQ RAX SSTK ZNGA

NEW YORK ( TheStreet) -- HP (HPQ) shares jumped 14.09% to $19.51 after the company reported first-quarter results that surprised Wall Street analysts.

Though HP's first-quarter revenue fell to $28.4 billion from $30 billion a year earlier, that was still good enough to beat Wall Street's expectations. Analysts polled by Thomson Reuters were expecting sales of $27.79 billion. Earnings also came in higher than consensus, with HP generating 82 cents per share, well above the 71 cents Wall Street was expecting.

HP Investors Heave Sigh of Relief, but Challenges Remain

Second-quarter and full year guidance was also surprisingly strong. For the second quarter, HP expects to earn between 80 cents and 82 per share, above the 77 cent estimate. For the full year, Palo Alto, Calif.-based HP expects to generate earnings of $3.40 to $3.60 a share, well above Wall Street's estimate of $3.32.

Shares of cloud computing company Rackspace (RAX) slumped 2.28% to $54.07 after the company lowered its prices for cloud bandwidth and content delivery network (CDN) by 33%, responding to increasingly price-sensitive customers. Shares had traded as low as $50.75 after the announcement.

San Antonio, TX.-based Rackspace also said it will be implementing tiered pricing for its open cloud product portfolio, starting with Cloud Files, its object storage service. These pricing changes will take place over the next several weeks, starting Feb. 22. The price will change from $0.18 to $0.12 per GB.

"The Rackspace Open Cloud is built upon a simple pricing model with no hidden costs or extra charges," John Engates, Chief Technology Officer at Rackspace, said in the press release. "This simple and straightforward pricing approach is a key part of how we help customers take advantage of the real value of the Rackspace Open Cloud, particularly for the next generation of bandwidth and content-centric web applications, which must deliver quality user experiences on a mobile and global basis."

Zynga (ZNGA) shares jumped 4.73% to $3.10 after Nevada legalized online gambling.

Nevada Gov. Brian Sandoval signed legislation yesterday allowing gambling online, after the Nevada State Senate and Assembly passed the bill. Approval comes after New Jersey Gov. Chris Christie vetoed a similar bill, but indicated he would sign an amended version next week.

Zynga, owner of the Zynga Texas Hold 'Em and Slots apps, has looked to online gambling to diversify its revenue outside of advertising and in-game purchases.

Shutterstock (SSTK) climbed 16.51% to 32.68 following a 42% jump in revenue year-over-year, as sales hit $42.9 million for the fourth quarter.

The commercial digital imagery company announced it now has more than 23 million images and video clips in its possession, and the number of active customer accounts surpassed 750,000 during the quarter.

"Our fourth quarter results capped a very strong year for Shutterstock," said Founder and CEO Jon Oringer. "We are very pleased with our progress on product innovation, global market penetration and financial performance over the course of 2012."