HP Tanks on Jim Chanos Critique, Instantly Rebounds

Hewlett-Packard HPQ declined sharply this afternoon after Jim Chanos referred to the stock as the ultimate value trap. Chanos added that it reminded him of Kodak (EKDKQ), and that the business is going from PCs to tablets. He also thinks that HP wasted money on acquisitions, and that computing will continue to move to the cloud. Inevitably, consumers will become "device agnostic," he said. Shares of HP dropped immediately after Chanos' statement, abolishing the two percent gain the stock had experienced this morning. HP has since rebounded, though its growth seems to have tapered off. Despite having one of the most successful printer businesses in the world, HP has endured a number of problems over the past 18 months. The company admitted that its leading non-Windows competitor, Apple AAPL, would lead the market in 2012. Now it appears that Lenovo will take HP's place as the world's largest computer manufacturer. Follow me @LouisBedigianBZ