The Motley Fool Previous Page

Stay Away From This Surging Dow Stock

Anders Bylund
January 7, 2013

Hewlett-Packard (NYSE: HPQ) is bucking the trend once again. The biggest 52-week loser on the Dow Jones Industrial Average (INDEX: ^DJI) is surging 0.7% as of 1:40 p.m. EST, while the index itself has plunged 0.6%. Only eight of the 30 components trade in positive territory right now, and HP's jump is the largest of them all.

But there's no substance to HP's pop today. The biggest news out of Palo Alto is a handful of new products, all unveiled at this week's Consumer Electronics Show in Las Vegas. They include a cheap touchscreen notebook, monitors with upgraded audio, and a somewhat controversial wireless media player, which allows you to store streaming videos from Netflix (NASDAQ: NFLX) and Hulu to view offline later.

Hardly the stuff of legend. The exception would be the "download now, watch later" solution for streaming video -- but that one seems to open a hornet's nest of licensing and copyright controversy. Given the outcry TV stations raised when little upstart Aereo gave New Yorkers online access to simple over-the-air broadcasts, I can't imagine that the content giants who make Hulu and Netflix interesting will allow HP to sell this thing. It's a nonstarter.

But that's the best explanation I can come up with for HP's move today. Other than this, it must be pure speculation that the time-honored technology giant will get back on its feet again. The PC market may be dead, but HP must have all th