HP shares down more than 20% in wake of yesterday's bloodletting
Yesterday HP announced plans to spin off their highly profitable computers division and shutter webOS device development, all in a bid to focus on enterprise services and software (along with printers) to maximize shareholder value. At the same time, CEO Leo Apotheker announced plans to acquired data management firm Autonomy for $10 billion.
If the reaction from the floor of the New York Stock Exchange is any indication, the shareholders aren’t exactly thrilled with this decision: shares of HPQ opened down more than 20% this morning and don’t show any signs of recovering in the day’s trading. Shares of HP have hit a new six year low. Overnight, HP managed to erase more than $12 billion in shareholder wealth. Yep, that’s how you maximize shareholder value right there.
Update: HPQ closed down 20.03%, lowering the market cap of HP by a whopping $12.23 billion.