HP Jumps On Reports of CEO Shake-up

Hewlett-Packard is up over 10% at around $25 a share right now on reports that the company’s board is considering ousting CEO Leo Apotheker who has had the job for less than a year. Meg Whitman, former CEO of eBay, Inc., would be his replacement according to Bloomberg News and the blog AllThingsD. Bloomberg News and AllThingsD both cited unnamed sources. A spokeswoman with HP had no comment on the reports.

The current CEO has been under immense pressure since taking over last November. People have been questioning his leadership after a series of poor quarters and the perception that he does not have a clear idea of where to take the company in the future. Analysts were not surprised by these rumors with Crawford Del Prete, an analyst with IDC, saying, ““Leo is driving a very tough and aggressive transition for H-P. It has frustrated many investors. I am not surprised at the rumors.”

While today’s rally is a welcome sight to shareholders, shares of HP have lost more than 40% of their value since the first of the year when the company was trading over $45 a share.

Some analysts question whether or not Meg Whitman is the right person for the job.

“In terms of Meg Whitman, she’s proven to be a very adept manager, but with H-P, it may make more sense to have someone with supply chain and software experience,” said Sterne Agee analyst Shaw Wu.

Hewlett-Packard’s board of directors are meeting today, so we should have a better sense of what will happen shortly.

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About Kyle Pinder

Kyle Pinder has has over five years trading and research experience in the large cap space. While still in grad school, Kyle trades daily and keep Active Investor up to date with the latest breaking news coming out of Wall Street and Washington.

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