Hewlett-Packard shares hit a 52-week trading low as investors processed the news that the company has appointed former eBay CEO Meg Whitman to lead the company.
HP saw its shares spike when media reports first raised the possibility that the company would replace former CEO Leo Apotheker after just 11 months on the job. But simply changing the company’s CEO hasn’t helped the company’s shares shake its downward trend, especially with some uncertainty about the company’s board and whether Whitman will be able to turn the company around.
Analysts told my colleague Jia Lynn Yang that Whitman’s experience may not be right for HP.
“Our concern would be that she doesn’t have a lot of enterprise and technology experience,” said Jayson Noland, a tech analyst at Robert W. Baird & Co. told the Post. “She’s not the most obvious choice to me.”
Whitman said her appointment does not “signal a change in strategy,” Bloomberg reported, meaning that she’s likely to keep charging ahead with the company’s apparent decision to focus on software rather than hardware. Apotheker recently stopped production on all webOS devices and announced that the company was possible looking to spin off its enormous PC business.
Ray Lane, now executive chairman of HP’s board of directors, said that the board dismissed Apotheker because he was not executing the company’s strategy.