HP ( HPQ) shares plunged on Wednesday after CEO Meg Whitman outlined the sheer scale of the company's massive turnaround plan. "I have said from the beginning that this is a four- to five-year journey," Whitman stated during HP's meeting with analysts in Santa Clara, Calif., warning that HP's still in the early stages of its corporate revamp. "2013 is a fix and rebuild year -- we will be working through the disruptions from the necessary changes we made in 2012." HP says that it's on track to complete its restructuring by the end of fiscal 2014. By 2016, Whitman expects to see the company's revenue growing in line with GDP and operating profit growing faster than revenue. For investors, though, the near-term pain looks set to continue. "I believe that we will continue to see a broad-based profit decline across business units in 2013," said Whitman. "The good news is that the bulk of the profit decline should be contained within Enterprise Services," she added. The No. 1 PC maker also delivered a weaker-than-expected fiscal 2013 outlook during the analyst event. Excluding items, the Dow component expects earnings of $3.40 to $3.60 a share, well below Wall Street's estimate of $4.18 a share. Earlier in the week, HP rolled out its Software-Defined Network (SDN) strategy, unveiling new software and applications to tap into the emerging tech trend. HP shares lost 14% for the week to close at $14.73 on Friday.
Zynga ( ZNGA) shares plunged in extended trading on Thursday as the social gamer gave a weak outlook. The San Francisco-based firm announced preliminary third-quarter revenue between $300 million and $305 million. Excluding items, the company expects a result between break-even and a loss of 1 cent a share. Analysts surveyed by Thomson Reuters were looking for the Facebook ( FB) partner to report break-even results on $275.9 million in revenue for the third quarter. For all of 2012, Zynga cut its previous projections for bookings and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Zynga's shares lost 12% for the week to close at $2.48.
Also on Thursday, Facebook announced that it has reached the milestone of 1 billion users. "If you're reading this: thank you for giving me and my little team the honor of serving you," explained Facebook CEO Mark Zuckerberg, in a blog post. Facebook shares dipped 3.6% during the week's trading to close at $20.91 on Friday. -- Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org.