HP finds itself in a complicated position. While the technology giant’s second-quarter revenue increased by 3%, its relatively new CEO, Leo Apotheker, was forced to lower the forecast for revenue for the fiscal year. He blamed the Japan earthquake, the anemic PC market, and a troubled services organization.
Wall Street did not take kindly to the news. While HP was once the technology leader that could do no wrong, market watchers are now concerned that the company does not have a clear strategy to overcome its problems. Not surprisingly, the stock price has tumbled.