HP stock tanks as Meg Whitman takes stage at analyst day

However bad you think things are at Hewlett-Packard, well, CEO Meg Whitman wants you to know that it’s probably worse.

Not surprisingly, as Whitman took the stage at the company’s analyst day on Wednesday, the stock headed due south. The stock was up from $17.13 on Tuesday to about $17.26 around 8:15 a.m., west coast time. Whitman began her presentation just about then and walked the audience through a staggering list of all the problems at the technology giant.

About 40 minutes into her talk, the stock was down 5.78 percent for the day, to $16.14.

“So what’s wrong at HP?” you ask.

Example: In 2011, HP added $1 billion in cost to its sales force at the same time revenue fell.

Whitman says HP lacks focus. Has too many products (2,100 laser printers!). Too many CEO changes left strategy wandering around. Not enough accountability  Not enough investment in research and development. Not enough metrics to measure performance. Bad process to taking new products to market. Aggressive competition. And declining worldwide economy.

“It’s going to take longer to right this ship than any of us would like,” Whitman said.

We’ll have on how she intends to turn this all around. In the meantime, plan to sit tight on the stock.

Whitman expects all the changes she has planned to pay off by 2015, when HP will be roaring ahead.

UPDATE: Stock down 10.68 percent on the day to 15.30.

 

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  • HP needs to follow Marissa and Google. They need a stronger presence on the Internet, especially YouTube

  • SS

    on the bright side, least she isn’t running the state. perfect would, she runs nothing.

 
 
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