Shares of beleaguered tech giant Hewlett Packard were up in pre-market transaction after what can only be be described as a nightmarish week which saw shares of the company dropped by 27 per cent, wiping a staggering $13 billion off its market capitalisation.
The timid rise of 1.23 per cent will do little to reassure existing stock holders, many of whom feared for the worse when HP shares fell by 20 per cent on Friday alone following the announcement by the company that it wants to exit the PC market and acquire UK-based Autonomy.
Many are concerned that by getting rid of the PC division, HP will lack a fundamental piece in its portfolio, one that would allow it to cover the complete spectrum when servicing its corporate clients unlike the rest of the competition.
HP has been keen on integrating its personal systems group (which included laptops, computers, workstation, tablets and smartphones) closer to its peripheral group (which includes the printers) and many see the PSG as being the perfect means to lure enterprise buyers into buying a complete package which would include servers, services and software.
However, with Apotheker's decision to follow the footsteps of IBM and become a "services company" because PSG doesn't make enough operating margin, one can only hope that it succeeds or HP might soon become an acquisition target itself.