The H-P (HPQ) Death Spiral Continues

By (Chris Preston),

Shutterstock photo

In April 2010, Hewlett-Packard ( HPQ ) was riding high.

The tech giant's stock hit a 10-year high of roughly $54 a share, and the company was valued at $125 billion.

Today the tech stock is trading for roughly one-fifth of its April 2010 price, and the company has lost more than $100 billion in value.

Its latest drop-off came after the company announced it suffered a $7 billion loss in overpaying for U.S. software maker Autonomy. It was the second multibillion dollar charge the company has had to write down in as many quarters as a result of deals gone wrong.

H-P's latest catastrophe pushed its shares down 12%, to $11.60, in trading today.

So, if you're scoring at home, H-P's stock has now fallen…

-56% in 2012

-72.5% the last two years

-And 78% from its April 2010 peak

Bad accounting hasn't been the only factor in Hewlett-Packard's demise. The maker of personal computers and printers, H-P has rapidly become a dinosaur in the age of smartphones, cloud computing and 3-D printing .

Churn at the top hasn't helped either. The company has had a lot of turnover at the top of late, cycling through several CEOs and executives. Those gaps in leadership likely had something to do with its Autonomy deal gone awry.

H-P was once the largest technology maker in the world by revenue. Now the company is in complete shambles.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: HPQ

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