Intel announcement shakes market, rattles nerves
Blaming a slowdown in the PC market demand, Intel released an earnings warning yesterday that sent the Nasdaq market plummeting Friday morning. The world's foremost chipmaker released a statement saying that its revenues would miss its forecasts. Analysts expect that many investors' portfolios were hit hard as the announcement sent a shudder through the entire high-tech sector.
Shortly after the market opened, almost 50 million Intel shares changed hands. The stock fell more than $14 to $46 15/16.
Intel has faced a series of setbacks this year, the most recent in early September as Intel got a downgrade from U.S. Bancorp Piper Jaffray, which dropped the stock to "buy" from "strong buy," citing weakening demand for the chipmaker's products. Intel also issued a recall on its 1.13 GHz PIII chip.
The effects of the announcement were also felt across the pond on the London stock exchange, where Intel blamed weak European PC sales and a feeble Euro for its somber earnings outlook.