Diamonds and Dogs

10/3/12

Hewlett-Packard Company (HPQ)

Hewlett-Packard fell to a nine year low today, down 13.02% at $14.90. The computer company saw its shares download a virus after CEO Meg Whitman warned of an unexpected steep decline in earnings for 2013. HP's business revenue is expected to fall in every division, with an exception of its software division. For 2013, the company forecast overall earnings to be between $3.40 and $3.60 per share in. That's well below the average forecast by Wall Street analyst of $4.18 per share. Investors were hoping for Whitman to make HP's turnaround happen quickly, however she said that recovery would begin to be seen in 2014 after some investments begin to pay off. HP is laying off 29,000 employees over the next two years and has written off $10.8 billion mostly related to the write down of its EDS services business.

Netflix Inc. (NFLX)

Netflix Inc. is showing some life today rallying 10.95% to $62.64. The video and movie streaming company saw its shares come alive on the big screen after analyst said that customer satisfaction is on the rise. Citi Research analyst Mark Mahaney said that more customers are satisfied with the movie streaming service, which shows that the company is starting to recover from a stiff price hike and aborted separation into two services last summer. At the end of September, about 48 percent of current subscribers said they were "extremely satisfied" or "very satisfied" with the service. That's up from 44 percent three months earlier and 45 percent six months ago. Netflix is still a far cry from its $295.00 highs but is showing some positive movement.

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