In a program on Bloomberg, Daniel Ives, vice president at FBR Capital Markets said that Hewlett-Packard Company (NYSE:HPQ) is facing difficult times. The company’s CEO will have to do a lot of work to take the company back on track. He thinks that Hewlett-Packard Company (NYSE:HPQ) is on the wrong side of the market. Its growth depends on a plethora of factors like revival of the PC market, sales of printers and innovation. But the most vital factor for Hewlett-Packard Company (NYSE:HPQ) to get back on track is to make a decisive and key acquisition, thinks Ives.
Ives said that Hewlett-Packard Company (NYSE:HPQ) needs to make a game changing acquisition. It can be in Big Data, Enterprise and Cloud sector. Last month, HP announced that it is splitting itself in two companies to divide and manage the operations more skillfully. But this announcement proved to be fatal. The stock is coming down ever since and the fourth quarter has missed its estimates. Hewlett-Packard Company (NYSE:HPQ) has reported a 2% decline in quarterly revenues. The company is lacking innovation and new products. Its competitors like IBM and Microsoft are seizing the market by rolling out new innovations in Enterprise Cloud.
Wall Street estimates for Hewlett-Packard Company (NYSE:HPQ) were $28.7 billion but the company plummeted and revenues came down to $28.4 billion. Profits also came down by 6% to $1.3 billion, whereas they were around $1.4 billion last year.
Hewlett-Packard Company (NYSE:HPQ) is still and an enterprise behemoth. It has 300,000 employees, though the company has announced a job cut of 5,000 employees during the split. The new PC section of Hewlett-Packard Company (NYSE:HPQ) can gain pace, but the company will have to strive hard and invest in billions to compete others in Cloud and Enterprise.