Hewlett-Packard Co. Stock Tumbles As CEO Mark Hurd Resigns

August 7th, 2010 - 7:04 pm ICT by GD  

By Meena Kar,
herdAug 7, (THAINDIAN NEWS) Undoubtedly the biggest event in the financial market on Friday afternoon turned out to be the unexpected resignation of the CEO of Hewlett-Packard Co., Mark Hurd, who resigned from his position following a sexual harassment investigation carried out against him by the company. The news of the resignation spread a shock wave over the stock market and led to the fall in the stocks of Hewlett-Packard Co during the second half. The company that reached new heights in the past five years and had seen the value of its stock rise to almost double its previous value, suffered the first burn of the resignation of Mark Hurd.

Since Friday afternoon many financial analysts have come up with their views over the impact of the resignation of HP CEO Mark Hurd on the stock market. While everybody acknowledged that the resignation will have an impact on the stock of Hewlett-Packard Co, some maintained that it would be a “short-term” effect. The senior analyst of The Motley Fool, Rick Munarriz marked the event as a “mind blowing” one which was fit for a Friday afternoon announcement. Rick Munarriz said that the market will get the whole weekend to “digest” the change; however, how it will return on Monday is doubtful. He compared the pre-Hurd and post-Hurd stage of Hewlett-Packard Co. and maintained that the resignation comes as a major blow for the company.

However, analysts like Nehal Chokshi of Technology Insights Research-Southridge Research Group have voiced that the management team of Hewlett-Packard Co. is no doubt a good one that would be able to cope with the absence of Mark Hurd. Nehal Chokshi added that a company which has $125 billion in revenue cannot depend solely on one member of the management group for its operation.

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