By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Hewlett-Packard Co. began a new
era under a new chief executive by watching its shares fall sharply
Friday as analysts focused on the enormous challenges faced by CEO
Meg Whitman.
H-P (HPQ) sank 4% a day after Whitman was named to replace Leo
Apotheker, a change that drew mixed reviews from analysts, some of
whom wondered if the former eBay CEO was a good fit for the tech
giant in its push to become a bigger player in corporate IT.
H-P was the top decliner on the Dow Jones Industrial Average
(DJI) which was up 30 points.
"While we believe Meg has proven to be a very capable manager
leading eBay from a start-up into a household name and one of the
largest internet companies, there will be plenty of scrutiny given
her lack of experience in the enterprise business," Sterne Agee
analyst Shaw Wu said in a note.
Brean Murray analyst Ananda Baruah echoed this view, saying in a
note, "We must admit we were underwhelmed at first blush with the
appointment of Meg Whitman as permanent CEO replacement of Leo
Apotheker given that she's not 'cut from an enterprise or hardware
cloth.'"
Also in the red were shares of Cavium Networks (CAVM) which sank
more than 11% after the company cut its revenue outlook.
But the Nasdaq Composite Index (RIXF) recovered from a wobbly
start to rise more than 1% to 2,483. The Morgan Stanley High Tech
35 Index (MSH) was also ahead more than 1%, while the Philadelphia
Semiconductor Index (SOX) added 2%.
The sector got a lift from gains in shares of Cisco
Systems(CSCO) , which traded up 1.3% Dell Inc (DELL) which moved up
1.8% and Texas Instruments (TXN) which gained more than 3%.