HP Shares Fall Heavily As Search For CEO Begins

HP's market capitalisation fell below $100 billion for the first time in more than one year as the world's biggest computer manufacturer, in terms of revenues, recover from the damaging scandal that hit its CEO, Mark Hurd.

Shares of the company hit a one year low falling from $46.25 to $41.85, a fall of nearly 9 per cent, before close on Friday after the resignation of Hurd following an inquiry over allegations of improper conduct.

Hurd has been credited with turning HP from into a technological powerhouse that saw the share price of the company nearly double between March 2009 and April 2010 as he oversaw the transition from a hardware company to an IT services mammoth.

As more details emerged over the weekend, Jodie Fisher, whose name repeatedly appeared in the subsequent media tsunami that followed in the previous 48 hours, issued a statement (here) saying that she was saddened by the case and never though that it would actually go that far.

Hurd has since been found guilty of submitting false expenses and paid Fisher an undisclosed amount of money to settle a claim against him. She also added that she ever had an "intimate sexual relationship" with HP's CEO dispelling rumours that might have said otherwise.

Is it the beginning of the end for HP? Will they survive this torrid period and thrive again? Let us know your thoughts.