Wall Street appeared unconvinced following the announcement by HP that former SAP co-CEO Leo Apotheker would become its new CEO and stocks of the world's largest PC manufacturer are free-falling, losing 4.30 per cent at the time of writing.
This meant that over the last few hours, HP's market capitalisation dropped by about $3.5 billion or roughly $1bn per hour since the New York Stock Exchange opened. Interestingly, shares of Dell and Lenovo were dragged down as well while IBM stocks actually went up.
The new HP CEO had a brief meeting with Wall Street analysts shortly after his appointment was announced but this offered very little insight about how his nomination would affect HP's current market strategies in general.
According to the WSJ, Apotheker seized the opportunity of a short 20-minute conference call to stress the fact that HP is uniquely positioned to defend its position as one of the biggest technology companies in the market.
In recent times, rivals like IBM, Cisco, Dell and Apple have started to weave together hardware, software and business services both in the consumer and business markets and it will be a significant challenge for HP to fend off its rivals.