Hewlett-Packard’s Restructuring Means Time To Sell
Hewlett-Packard Co. (HPQ) is not the most appealing long-term investment, as it’s still undergoing a tumultuous phase of restructuring and realigning operations, while attempting to establish a new identity for the future. Current shareholders should hold or consider a short sell or short squeeze in order to hedge interests. Interested investors should utilize Hewlett-Packard as a short-term investment or consider some of the other more stable firms from the tech sector.
Hewlett-Packard had a weak earnings release report and its outlook is pinned on hopes of becoming a competitive enterprise IT provider and finding an avenue for resurgence in the consumer market. Hewlett-Packard’s new focus is on enterprise cloud SaaS, aesthetic redesigns for the PC units, and entering into the mobile sector via smartphone or tablet. This growth and transformation must be organic and may take years to complete if at all successful.
Dell (DELL) is Hewlett-Packard’s most direct competitor in the PC market. Hewlett-Packard is partnering with Microsoft (MSFT) to improve its enterprise portfolio; both Microsoft and Cisco (CSCO) are more successful firms in the enterprise IT sector. Hewlett-Packard depends greatly on Intel (INTC) for processing chips, as do many tech firms. Intel’s performance is indicative of the overall tech market, while it’s less susceptible to the headwinds than individual firms like Hewlett-Packard.
Hewlett-Packard’s market cap is around $35 billion, Dell’s is $18 billion, Intel’s is $115 billion, Cisco’s around $101 billion, and Microsoft’s around $260 billion. To continue reading, click here.