DXC stock down almost 20% today on CEO change. Hail hail the king is dead ; that goodness for that. But, I am surprised the market is pushing DXC stock further down with CEO transition. I would have thought the market would welcome the EXIT of Lawrie and the stock would go up. Why do you think this happening???
FYI; DXC stock trade volume averages 3M per day. Today it is over 13M and the day is not over. Lots of shareholders trading with negative views of the future.
8 replies (most recent on top)
If Lawrie is walking away, that means he’s s—ed every last drop of blood out of the corpse of this company. That’s a pretty clear message that there’s nothing left to invest in.
What is good for Wall Street is bad for employees. Its as simple as that.
The end of the slash and burn is what they see, which is the end of their profits.
Also, I believe they think Sal doesn't have what it takes to run DXC, his CV isn't CEO material (yes I know Accenture gave him a "CEO" title for a Vice President role...)
New CEO will have no positive effect on the stock. What you really need to understand is ML operated with FULL knowledge AND support of the BoD. It is easy to target him as a scapegoat but the problem is much deeper than the particular figurehead. Layoffs will continue and profits will decline. It is DXCs destiny.
@110dW5Q4-njd - won't be acceptable to shareholders or Wallstreet - company needs to cut costs and make as much profit regardless of the welfare / jobs that they provide to their employees.
Will be more of the same unfortunately.
If you recognize that alot of what Lawrie did looked good on the balance sheet (including no raises, restricted bonuses, wfrs, not paying suppliers, etc), UNdoing that is going to look BAD on the balance sheet. Remaking the company as we all hope will require pain and suffering on the Wall Street end of things.
Wallstreet if fickle. The shareprice can react violently to uncertainty. It will slowly go up. I hope.
I am hoping it’s because he (new Mike) said he wants to invest in the company which translates to money and that takes away the short term profits? Where as reducing costs (WFRs) gives the short term profits a boost.
I actually was sitting here wondering the same thing and that’s one wishful thinking scenario.
The other is if ML jumped ship then his golden ride must be over and it’s time to get out too.
Any new CEO will be in the same mould and with how DXC went from good / fair to bad by tenure of ML - the downward direction and tainted reputation of company cannot be easily reversed.