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Wednesday, August 31, 2011

After Pushing webOS Off a Cliff, HP Watches Its Stock Take a Deep Dive

What a difference a day makes.

In the 24 hours since Hewlett-Packard announced it was cutting production of its high-profile webOS mobile devices and might spin off its huge consumer PC business, stock of the tech giant has plummeted 20 percent.

HP shares are down $5.91 right now, at $23.60, one of the worst dives in its long history.

The reason? Wall Street is confused at what HP management and its board are up to.

So is everyone else, so get in line!

In any case, the one-fifth drop in value might be due to the length of time HP said it would take to execute its dramatically announced new plans. That is likely to keep the stock depressed, as investors are still uncertain what it all means.

One thing was clear: HP’s financial prospects are certainly dicey. Even as the Palo Alto, Calif., company announced its major strategic shift, it reported disastrous third-quarter earnings, included lowering its full-year forecast once again.

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