Hewlett-Packard’s Cloud Front A Big Reason To Get In Now
Hewlett Packard (HPQ) is a renowned name in the lucrative diversified computer systems industry that is pretty much dominated by IBM. Basing on the prevalent fundamentals, it appears as if HP is bound on the hedges of disaster. In the same breathe the negative quarterly revenue growth of -7% extinguishes the hopes of recovery. A section of analysts in the critic disposition have even pointed out that HP may soon slip into the dreaded nonstarter category.
In as much as the outlook bears some shred of logical sense, I choose to differ. I believe that HP is a sleeping giant that merely overslept. There is still some potential at HP and I am sure that a silver lining is certain to come. There is an incredibly huge gap between IBM and HP as IBM extends an eclipsing market cap of $231 billion- a multiple of HP’s lesser $48 billion. Actually HP, Accenture (ACN) and Dell (DELL) have been inevitably placed in a heated rat race as their financial capabilities are closely matched yet shed light on IBM’s undisputed dominance. Other would-be challengers to IBM’s crown, such as Cray (CRAY) and Teradata (TDC) are, for the time being at least, left out in the cold.
As it is, there are many factors that work against HP. All the same, its share value will increase in the long run. Of course, my opinion is based on prevalent trends and news in the market.
In February, HP announced groundbreaking improvements in its cloud computing front. To continue reading, click here.