HP Inc. shares skyrocket by 13% following split
The newly divorced HP Inc. raised a few eyebrows in the wake of its split yesterday when its share price jumped by more than 13 percent – in contrast to its ex, HP Enterprise, which saw its shares slump by more than five percent.
The market activity indicates that Wall Street’s money men believe there’s more immediate value to be had in HP Inc’s printers and PCs than there is in the cloud, software, server and storage services offered by HP Enterprise.
At the time of publication, HP Inc’s shares were trading 13 percent up at $13.83, while HPE’s shares had tumbled by more than five percent to $13.94.
In an exclusive interview with CRN.com, HP Inc’s new CFO Cathie Lesjak said the spike was likely linked to the solid near-term, mid-term and long-term growth strategies its CEO Dion Weisler had laid out upon the split.
“I think we have laid out a really good strategy, where we have got things we need to do in the core in the near term,” she said. Lesjak was referring to near-term opportunities in commercial mobility, graphics, packaging and the copier market, as well as future prospects in areas like 3D printing and immersive computing.
Cross Research analyst Shannon Cross told Reuters that she was also optimistic about HP Inc’s prospects going forward. She said the company would benefit from cost-cutting in the printer business, and an expected improvement in PC sales by 2016.
“I think people see more opportunity for upside in HP Inc earnings and more aggressive return of cash to shareholders,” Cross said.
Image credit: NASA-Imagery via pixabay.com
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