Hewlett-Packard (NYSE:HPQ) is a large American information technology company that supplies hardware and software to businesses and individuals. Its shares have risen 21% since the beginning of the year.
Although the PC industry is still showing negative dynamics, about half of Hewlett-Packard’s revenue comes from the segments that produce personal computers and printers. In annual terms, the company’s sales have been falling for the 11th quarter in a row. The corporation is still undergoing structural changes in the process of implementing its five-year strategic plan. During a press conference following the latest quarterly report, Hewlett-Packard CEO Margaret Whitman noted that the restructuring is in full swing. The company plans to lay off another 11-16 thousand employees, bringing the reductions over two years to 50 thousand people.
The excessive optimism surrounding the papers is not entirely clear. The latest quarterly report cannot be called brilliant. Technically, the shares have been moving in a wide sideways trend for two months now and are currently at its upper limit ($33.84), with a further decline to $31.4 likely, which may not be a reason to buy.
