That said, it is possible that HP could have been overvalued and perhaps analysts expected much more from HP than its talents and market reach could deliver. That's not a sentiment fitting for a company of its stature, but clearly there was a disconnect as the stock has lost almost 70% of its value since 2010.
What Is HP Today?
Its challenge now is figuring out a way to restore the confidence of Wall Street. Not an easy task at this point, but not impossible. To that end it has been working hard to prove that it does not need to be Apple (AAPL) in order to survive. Unfortunately, in the process, it has tried to become an enterprise computing corporation -- one that follows the mold of IBM (IBM) and to a lesser extent Dell (DELL). But it has been unsuccessful.
Now that the turnaround story that it was thought to be is going to take longer than expected, I have to wonder what is HP today? What can it realistically become tomorrow?
Investors are struggling to answer this, but I'm not certain at this point that HP even knows. This is where I think the company should start thinking like Apple and re-invent itself as Apple was able to do over a decade ago with the iPod.The company recently said it want to re-enter the mobile phone market. Perhaps that will help it generate love on Wall Street and restore credibility. But it's a mistake. HP is not a phone or gadget company -- even less now on the heels of this disappointment. While entering the smartphone market may generate a buzz, it needs to realize it wants no part of Apple and Google (GOOG). At least not until it gets its house in order. After all, this is the same cutthroat industry that has left for dead once-dominant powers such as Research in Motion (RIMM) and Nokia (NOK) while leaving little room for anyone else wanting to sniff a piece of the pie. Even Microsoft (MSFT) is finding it increasingly difficult to convince the market that it can produce a phone that consumers love.