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More than $1 billion shed from HTC’s market cap in two days

Zach Epstein
August 7th, 2012 at 3:05 PM

HTC’s (2498) struggles did not relent in the second quarter as the company’s profit tumbled 58% compared to the same quarter last year. To make matters worse, the company’s third-quarter guidance sees sales dropping by 23% as margins continue to thin. HTC’s revenue declined at an even swifter rate during the first month of the quarter, and investors reacted on Monday and Tuesday by shaving more than $1 billion from the company’s market capitalization in just two days. “HTC’s weak third-quarter outlook means it will continue to lose market share and any market-share gains in China won’t likely offset its substantial loss in its key Europe and U.S. markets,” RBS analyst Wanli Wang told The Wall Street Journal. Shares of HTC stock have fallen by more than 50% so far this year.

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Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.




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