Thaindian News

By Meena Kar
Aug 9, (THAINDIAN NEWS) On Monday, as the U.S. Stock market opens, all eyes will be fixed on the shares of Hewlett-Packard Co. that announced the resignation of its CEO Mark Hurd on Friday afternoon. The value of the stocks have already seen a fall in the market on late Friday after the announcement of the resignation and as the Wall Street adjusts and reassess Hewlett-Packard Co. after the resignation, analysts believe that the market will post a lower opening for the company. Many financial analysts from Friday have voiced their concern over the stock value of Hewlett-Packard Co. and how the market will open on Monday.

On Friday, during the after-hours trading, the Hewlett-Packard Co. shares fell to a 52-week low price unexpectedly. Many analysts have voiced that Mark Hurd was a brand in himself who was associated with the stability and consistency of Hewlett-Packard Co. His departure has rattled the Wall Street and made them skeptic about the management of Hewlett-Packard Co. It is this void, according to analysts, that is affecting the share prices of the technology giant. As per reports, in the pre-market trading, the prices of the shares of Hewlett-Packard Co fell 6.4% from where it closed on Friday at the New York Stock Exchange.

Although temporary CEO Cathie Lesjak and other Hewlett-Packard Co. investors are trying to reassure investors that the company will be operating normally as before, analysts feel that the void created by Mark Hurd makes the company’s shares less reliable. According to them, Mark Hurd’s resignation increases the company’s operational risk and will give rise to a period of uncertainty. However, it is only after the Monday trading that the exact position of the company can be gauged.