Are breakups the new Wall Street trend
Are breakups the new Wall Street trend? Last week it was eBay's announced spin off of PayPal making waves. Today, Hewlett-Packard said it will split into two companies in order to become more competitive and nimble. It's similar to what Motorola did several years back, or more recently, IBM selling its hardware unit(s) to Lenovo. HP is going to split into Hewlett-Packard Enterprise which will focus on corporate hardware and services, and HP Inc, which will be the PC and printer business. It makes sense, given the PC and printer business is highly commoditized. Judging by the jump in HPQ shares today, it seems investors approve of this move. I wouldn't be surprised if either of the new companies end up merging or being acquired once the dust settles from the split.
I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...
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