Palm (PALM) Sinks on Weak Outlook
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Shares of Palm, Inc. (Nasdaq: PALM) are taking a beating today after the Company lowered its outlook for the second quarter of 2008. Palm said it now expects revenues to be in the range of $345 to $350 million, down from $370 to $380 million. EPS are expected to be between ($0.08) and ($0.10), versus the consensus of a $0.04 gain.
Shares of Palm have fallen more than 16% today, and have hit a new 52-week low at $5.33. Furthermore, by 11:30 am, Palm stock had already traded hands about 12 million times, much higher than its normal average daily volume of about 4 million shares.
Palm stock has had a bad year, down about 60% year-to-date. Shares of Palm traded relatively flat this year, until mid-October when private-equity fund, Elevation Partners disclosed a 25% stake in the Company. Shares surged on the news, but were crushed after an analyst at Bear Stearns downgraded the stock because it diluted shares much more than expected. Palm stock dropped more than $10 in one day, sinking as low as $8.50. Since then, shares have continued to decline, showing a prominent downtrend.
Shares of Palm have fallen more than 16% today, and have hit a new 52-week low at $5.33. Furthermore, by 11:30 am, Palm stock had already traded hands about 12 million times, much higher than its normal average daily volume of about 4 million shares.
Palm stock has had a bad year, down about 60% year-to-date. Shares of Palm traded relatively flat this year, until mid-October when private-equity fund, Elevation Partners disclosed a 25% stake in the Company. Shares surged on the news, but were crushed after an analyst at Bear Stearns downgraded the stock because it diluted shares much more than expected. Palm stock dropped more than $10 in one day, sinking as low as $8.50. Since then, shares have continued to decline, showing a prominent downtrend.
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