Is HP a train wreck or stabilizing?

When Hewlett-Packard Co.released another quarter of falling revenue plus a $5 billion write-off over a huge acquisition this week, its stock took an unsurprising dip to its lowest point since the fall of 2002.

But this morning it had gained a dime or so back as investors pondered the meaning of it all.

One way to look at things is that HP might have only suffered a $2 billion loss in the quarter instead of $7 billion had it not been forced to write off almost half the value it paid for British software company Autonomy last year.

Through that lens HP’s restructuring isn’t going too badly, reflecting the confidence in CEO Meg Whitman’s voice to financial analysts.

The other way, to look at things is, as one analyst told his clients HP is “an unmitigated train wreck.”
(HP CEO Meg Whitman)

Here are several takes at the situation:
Pete Carey at looks back at HP’s history of acquisitions and finds a number of them have gone sour. Think Palm, EDS and how long it took to get Compaq right.
Meanwhile ComputerWorld’s Chris Kanaracus totes up the winners and losers
(Editor’s note: There has been some confusion about the amount of write-off HP has taken over the Autonomy deal. In total for the just ended quarter it wrote off $8.8 billion. Of that $5 billion was attributed to Autonomy)

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times. I can be reached at hsolomon [@]

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now