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Profits vs marketshare - Morningstart on HPQ

Hewlett-Packard's HPQ results, released Wednesday, met some short-term expectations, but next year's outlook is uninspiring and our fair value estimate is unchanged. It is strategically important for the company to remain a top seller of computer systems worldwide, and HP is clearly not afraid to cut prices to make that happen. HP's willingness to sacrifice profitability for market share creates an unattractive investment outlook, in our opinion, especially when two units that generated about $35 billion in revenue this year produced zero operating profit. We are going to wait a little longer on this turnaround story.