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HP share price drops 20% as markets react to radical strategy

Simon Quicke
As the dust settles over the momentous announcements made by HP to exit the tablet market, spin-off its PC efforts and buy Autonomy the verdict in terms of the impact on share price has already been negative.

The markets closed Friday night with shares in HP dropping by 20%, following a 6% drop on Thursday in the run-up to the announcements from the CEO Leo Apotheker.

Since Apotheker arrived as CEO in September last year the value of shares has more than halved and billions has been wiped off the value of the company.

The CEO might have been frank about the need to exit areas where it is not winning the battle against competitors but investors have reacted with dismay over the strategy.

With the expectations that it will take at least a year to off-load the PC operation the share prices of some rivals that are likely to benefit from customer hesitation around HP rose Friday with Dell seeing stocks climb by 4%.
Related Topics: Desktop PCs, VIEW ALL TOPICS

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