Market Update: HP Stock Price Falls!
Hewlett-Packard is one of the biggest hardware companies in the world. The company’s computers and laptops are some of the best selling products in that category. Like many other companies, HP has also been having a bad time during the Coronavirus pandemic.
People have been saving up on their incomes. Spending patterns are changing and HP’s products are not essential. Due to this, the company has been suffering. The company’s officials are working hard to sustain the company during this time.
HP Stock Price Falls
Hewlett-Packard’s stock closed on Wednesday, 27 May 2020 at a price of 17.12 USD. But then HP’s stock opened at a price of 15.69 USD on Thursday, 28 May 2020. This was a fall of 1.43 USD in pre-market trading.
Then as the day opened, the stock continued to fall to a low of 15.02 USD. The stock has recovered slightly since then. As of 1:39 GMT on Thursday, HP’s stock is at a price of 15.13 USD. This is a fall of 1.99 USD or 11.65% over the previous closing price. This is the first time this week that HP’s stock is poised to close the day at a lower price than the opening price.
Why Did The Stock Fall?
The fall in the stock price came after the company reported its results from the second quarter. The company had a net income of $764 Million with total revenue of $12.47 Billion. The company had revenue of $14.04 Billion at the same time last year.
The company’s revenue is below the market expectations of $12.93 Billion. Due to the company failing to meet market expectations, the company’s stock price started falling. Investors are quite bearish on the stock right now.
HP Stock: Covid-19 Impact
Hewlett-Packard’s stock hit its 2020 high on 25 February 2020 at a price of 23.35 USD. But then the coronavirus pandemic started spreading and became a crisis. The stock plunged fast and hit its 2020 low of 13.11 USD.
The stock is struggling to recover since then as it has been very volatile in the past couple of months. Even though the demand for personal computers is rising due to work-from-home conditions, HP is still going to struggle for a few more months.