According to a recent article posted on Bloomberg, Hewlett-Packard Co shares recently dropped by 9.3% in premarket trading today, prior to the drop HP shares were worth $48.20, however the 9.3% drop equates to $4.45, therefore they currently stand at $43.75.
HP expects revenue of $130 billion to $131.5 billion for the year ending October, this is quite a bit lower than FactSet’s $132.91 billion prediction and some are suggesting that revenue growth is becoming a huge problem for the company.
It will be interesting to see what 2011 brings HP, back in 2010 they acquired Palm, now we are beginning to see new smartphones and tablets emerge running webOS, these releases could potentially be a huge factor in the company’s success this year.
According to one analyst, HP’s long-term prospects are good, ignoring the smartphone and tablet market HP also has a strong future in the commercial PC, server, storage, networking and printing businesses, therefore it is hard to say why there are financial worries surrounding the company.
In September, 2010, HP named LÃ©o Apotheker as the CEO and President of HP, therefore it will be interesting to see if things improve in 2011, with the HP Pre 3, HP Veer and HP Touchpad hitting the market this summer we could see a huge change in direction in HP’s business, I guess we will have to wait and see…
If you would like to find out in-depth information regarding HP’s finances check out this article.
Do you think that HP has a strong future?