Boston, MA 10/17/2013 (wallstreetpr) – Hewlett-Packard Company (NYSE:HPQ) is one of the most storied tech firms out of the Silicon Valley. But the company has nothing to celebrate about in the recent days. It seemingly dwindling market fortunes have seen it lost traction among stock investors in the securities exchange market.
Nothing best captures the struggle of HPQ than its recent removal from the Dow Jones Industrial Average, a benchmark index. So can it be said that the management at HPQ is ‘herding cats’?
The problem with HPQ stems from the firms big revenue coming from the PC sales, but this market segment has not been doing well. So analysts have no option but to grow pessimistic about the stock. However, the tone has started to change as analysts begin to see the company getting on track to stabilize its revenue and then grow it.
The change in analysts’ sentiments on HPQ is not far fetched. Why HPQ has seemingly been putting a lot of efforts in its revival with little results to show for it, the company’s CEO Meg Whitman recently announced that HPQ has now taken the right corner towards its goal. And what is that goal? The goal is to first and foremost ensure that the company’s revenue is stabilized. This is the target for 2014. Afterwards, another phase follows and this is about growing the revenue.
The revenue acceleration is set for 2015 onwards. The company’s management says that it is looking at five years to get things done. It is these sentiments from HPQ that have brought back confidence among investors and cause the change of its view among analysts.
Of course rhetoric along will not put confidence in investors about this huge tech company. And this explains why it has developed new and innovative products and services for the market. The company has now abandoned the rally to plug the holes, but instead grow its PC, printer, software and service markets to capture consumer market and enterprise market. And there are indications that this strategy is going to payoff handsomely.
