HPQ Stock Anlaysis

HPQ Stock analysis

Warren Buffett bought HPQ stock. Well, his company, Berkshire Hathaway did. They bought 121 Million shares of HPQ. That’s an 11% stake that’s worth over $4 Billion. 

So what does Buffett and Berkshire like so much about Hewlett-Packard?

Let’s dive in and find out!

Who is HP (Hewlett Packard)?

HP is an American multinational IT company that was renamed in 2015 from its original computer division Hewlett Packard.

HP is listed on the New York Stock Exchange as the ticker HPQ and is also a part of the famous S&P 500 (fortune 500 list). 

Hewlett-Packard initially listed on the stock exchange in January 1968 at an opening price of 19 cents per share. When Berkshire disclosed its purchase of HP shares, the stock rose to an all-time high share price of $41.47. 

HP sells a wide variety of electronics, primarily computers and printers. They have a wide variety of computers, both desktops and laptops, for all levels of consumers. For businesses or personal computers (PCs), HP has them all covered.

Chart of $HPQ since its listing in 1969

How does HP make money?

HP operates under a mass-market business model. This means they do not pay attention to market segmentation, but appeal to all consumers on the market with essentially the same products and services.

An example of this is HP’s business laptops. They have four different models that are attractive to all consumers in the market for a business desktop:

  • The HP ProBook is an affordable business desktop.
  • The HP EliteBook is a high-end business desktop.
  • The HP ZBook is a premium professional workstation laptop
  • The HP “ Elite” are ultrabooks and detachable laptops and tablets.

HP has a similar lineup with their business desktops as well with the HP ProDesk, EliteDesk, and Z workstations.

HP’s Market Share and Competitors

HP has a very strong household name. This allows them to keep a significant amount of market share as they appeal to every type of consumer.

In the first quarter of 2022 HP held a 20.5% market share of global personal computer shipments. This puts them second to Lenovo (23.6%). Dell is the third-largest market shareholder of global PC shipments (17.7%). 

These 3 companies dominate the market holding over 60% of the entire world’s market share in this category.

*All statistics from https://www.statista.com*

HPQ Stock Fundamentals

Total Revenue (2021)Net Income (2021)Price to Earnings (Current)
Price to Sales (Current)Price to Earnings (Current)Market capitalization
Equity (2021)Debt (2021)Cash in the Bank (2021)

What do I do with this information?

This is your launch pad. From here you can start your own due diligence and see if HP is worth your money.

If you like stock analysis like this, we recently took a look a Tesla, NIO Inc., Roblox and Hut 8.

Getting used to analyzing stock is one step towards taking control of your money.

That’s all for now.

Happy trading,

Your fellow Stock Hackers,

🍒Cherry & Erwin

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