Intel cops a stock lashing

Intel cops a stock lashing

Intel's share price has come under fire after last week's announcement the company will post lower than expected third-quarter earnings.

Intel announced the forecast in a press release published on the Intel Web site last Friday, attributing the drop to an European slump in demand.

Although the Intel announcement predicted only a minor drop in the forecast gross margin - from 64 per cent to 62 per cent - the Nasdaq exchange responded without mercy.

Intel shares plummeted in Thursday's after-hours trading. The company's stock fell over 19 per cent to $51.00 shortly after the Nasdaq opened trading, and has continued steadily downward ever since. By the end of the week, Intel shares closed down over 21 per cent at $US48.43 per share.

Intel continues to be hotly traded, with nearly 2 million shares changing hands daily.

The fall in Intel's share price had an uncomfortable ripple effect across the market as other tech stocks also suffered falls in their share price.

The Nasdaq exchange, which is heavy with tech stocks, was down 104.46 points, or 2.73 per cent in value, over Thursday's close, as of 11 a.m. EDT. Values of the American Stock Exchange and the New York Stock Exchange were also lower, as were nearly all other major market indices.

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