HP CEO Mark Hurd’s Resignation’s Impact Over Market

SAN FRANCISCO (GaeaTimes.com)- The stock market suffered a major jolt on Friday after the CEO of Hewlett-Packard Co. Mark Hurd resigned from his position. The resignation of the HP CEO, who had helped the company stocks to escalate to double of its previous value in the past five years, led to the tumbling of Hewlett-Packard Co’s stock late on Friday. Stock analysts have come up with some contradictory views over the issue of the resignation of Mark Hurd and its impact on the market. While some have voiced that Mark Hurd was a brand in himself that worked in favor of the company, many others have asserted that the resignation will only have a short term effect on the stock value of Hewlett-Packard Co.

Rick Munarriz, the senior analyst of The Motley Fool, labeled the resignation as a “mind blowing event” that has come at the right time as the market gets a full weekend to “digest it”. However the senior analyst seemed doubtful whether the market will be able to forget the event by Monday. Rick Munarriz maintained that Mark Hurd played a crucial role in the success of Hewlett-Packard and referred to the state of the company pre-Hurd and post-Hurd. He maintained that Hewlett-Packard Co. came up as an “entirely different animals” after Mark Hurd became the Chief Executive Officer of the company. According to Rick Munarriz, the resignation of Mark Hurd comes as a big blow for Hewlett-Packard Co.

However, analyst Nehal Chokshi of Technology Insights Research-Southridge Research Group mentioned that the resignation of Mark Hurd as the CEO of HP is a “short-term negative” as the company has a strong management team that includes members like Cathie Lesjak. He emphasized that a big company like Hewlett-Packard Co which has $125 billion in revenue can never depend wholly on one person only.