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HP Stock Drop: Price Levels to Watch | Tariffs Impact
- HP shares experienced a sharp decline Thursday after the company's profit fell short of analysts' expectations.
- The company said its guidance reflects tariff costs and actions taken to mitigate associated trade risks.
- Shares of HP fell more then 8%, making it the biggest decliner in the S&P 500 on Thursday.
HP’s stock plunged after disappointing earnings and a weak outlook, with the company citing increased costs from tariffs as a key factor. Technical analysis reveals critically important support levels to watch as the stock navigates this downturn. Investors should keep an eye on the $25, $23, and $21 levels, which could offer potential entry points, while resistance looms at $29. Shares are down nearly a quarter of their value this year. HP’s challenges stem from the volatile trade surroundings, compounded by supply chain diversification efforts. Read more for an expert perspective from News Directory 3 on the rising wedge breakdown and the likely impact on HP’s future performance. Discover what’s next to anticipate.
Updated May 30, 2025
HP shares experienced a sharp decline Thursday after the company’s profit fell short of analysts’ expectations. The PC maker also issued a weak outlook, attributing the shortfall to increased costs associated with tariffs.
The company said its guidance reflects tariff costs and actions taken to mitigate associated trade risks. CEO Enrique Lores said additional tariff costs “could not be fully mitigated in the quarter,” and that HP has “implemented price increases to help offset cost pressure.” HP has been working to diversify its manufacturing footprint and reduce its cost structure.
Shares of HP fell more then 8%, making it the biggest decliner in the S&P 500 on Thursday. The stock has lost nearly a quarter of its value in 2025, as investors weigh the costs of the company’s supply chain diversification efforts amid unpredictable trade policies.
Rising Wedge Breakdown
Since hitting a low last month,HP shares had been in a countertrend rally,forming a rising wedge pattern.Though, the stock broke below the pattern’s lower trendline on above-average volume Wednesday, signaling a potential continuation of the downward trend.
The relative strength index has also fallen below 50, indicating weakening price momentum.
Critically important Support Levels to Watch
The first support level to watch is around $25, where the stock closed thursday. This area provided support during a period of consolidation within the rising wedge pattern and the September 2023 trough.
If the stock falls below $25, the next support level is around $23. this price point aligns with the low of the stock’s first minor dip after bouncing from its early-April low.
A further decline below $23 could lead to a revisit of the $21 support level, which is near last month’s tariff-driven low. Investors may look to this area for longer-term buy-and-hold entry points.
Key Overhead Area Worth Monitoring
During future upswings, investors should monitor the $29 area. A recovery into this region would likely encounter resistance near the rising wedge pattern’s peak, which also aligns with a temporary pause in the stock’s downtrend during March.
What’s next
Investors will be closely watching HP’s ability to manage tariff costs and maintain profitability in the coming quarters. The company’s performance will likely be influenced by global trade conditions and its success in diversifying its supply chain.