Big Investor Bails On HP PC Business
Investors are walking away from HP’s PC business as the business struggles with billionaire Warren Buffet’s Berkshire Hathaway slashing their investment by half.
The business recently reported that revenues fell another 6.5% to $13.8 billion in the period ended Oct. 31.
HP’s sales of computers to businesses also slipped 11% from a year earlier to $6.21 billion, under-performing expectations.
Contributing to the decision by Berkshire Hathaway to exit the business was that HP stock have underperformed those of rival Dell whose shares are up 72% this year.
Dell’s stock has risen 72% in 2023 to outperform the Nasdaq 100 Index’s 49% advance and HP’s 13% gain.
PC makers have been battered the past 18 months as demand cratered in a post-pandemic bust.
Recently, analysts have begun to see signs of life for the industry.
In a recent report, IDC wrote that while the global economy remained subdued, the PC market had “moved past the bottom of the trough.”
HP Chief Executive Officer Enrique Lores said he expects improvements in the new year.
Berkshire’s holding in HP is worth about $1.56 billion based on the stock’s closing price on Monday.