“In addition to causing another 20 percent drop in company
market value — company share prices have hovered in the $7.25
range since the announcement — the earnings warning news also had
a significant secondary effect within an analyst community that has
stuck by the company throughout its rocky market performance.”
“Monday, W.R. Hambrecht analyst Prakesh Patel finally decided to
downgrade the company to a ‘market neutral’ rating from ‘buy’ after
months of enthusiastic support.”
“‘With the company missing its projected revenue totals two
quarters in a row, they really have a credibility issue,’ said
Patel. ‘You really have trouble taking their word for what they’re
going to hit next time.'”
Web Webster has more than 20 years of writing and editorial experience in the tech sector. He’s written and edited news, demand generation, user-focused, and thought leadership content for business software solutions, consumer tech, and Linux Today, he edits and writes for a portfolio of tech industry news and analysis websites including webopedia.com, and DatabaseJournal.com.
LinuxToday is a trusted, contributor-driven news resource supporting all types of Linux users. Our thriving international community engages with us through social media and frequent content contributions aimed at solving problems ranging from personal computing to enterprise-level IT operations. LinuxToday serves as a home for a community that struggles to find comparable information elsewhere on the web.
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