HP shares up after nixing PC spin-off plan
Shares are up about 3 percent today, presumably due to positive reactions over HP's decision to keep its PC business.
Hewlett-Packard's stock is trading up today, following the company's decision yesterday to keep its PC business, known internally as the Personal Systems Group, in-house.
"HP objectively evaluated the strategic, financial and operational impact of spinning off Personal Systems Group," HP CEO Meg Whitman said in a statement yesterday announcing her company's decision. "It's clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees."
As of this writing, HP's shares are trading up 3.2 percent to $27.85. It's not a major spike, but at the very least, it appears to be an endorsement of the company's move.
HP announced plans over the summer to possibly spin off its PC business. The company said at the time that due to the Personal Systems Group's low margins, and a desire to focus on software and solutions, it might be a good idea to go on without the PC operation holding it down.
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However, the decision wasn't final, and was drawn up by former CEO Leo Apotheker, who was ousted a month after the announcement was made. Keeping the PC business is the first major indication of how Whitman's direction for HP differs from that of Apotheker.
So far, shareholders appear to have faith in Whitman. Since she took office as CEO, HP shares are up over 16 percent. It's a notable shift from the downward trend the stock suffered from under Apotheker. Still, HP shares are down 35 percent over the last 12 months, even including Whitman's bump. Since January 1, the company's stock has slipped 34 percent.
HP is the world's largest PC maker. During HP's last fiscal year ended October 31, 2010, the division generated $40.7 billion in revenue.