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HTC Value Drops $395M Following Disappointing Q2 Earnings Report

by Jacob Kleinman | July 8, 2013

HTC’s share price dropped to the company’s lowest in over seven years today as investors fled from the Taiwanese OEM and brokerages warned against the smartphone maker’s future viability. Following HTC’s disappointing Q2 earnings report last Friday, its stock has dropped 6.9 percent to $6.27 per share, slashing $395 million in value.

Last week, HTC reported a profit of about $41.63 million for Q2, thanks to the popularity of the HTC One. The news was an improvement after the losses it posted in Q1 but still fell short of analyst predictions. The news, coupled with a slowdown in the top tier smartphone market as low-cost devices begin to drive industry growth, has sent the company into a tailspin that some analysts believe HTC won’t recover from.

“The window of opportunity is over – failure to turn the ‘best ever’ HTC One into scale bodes ill for HTC’s long-term outlook,” warned Morgan Stanley in a note published earlier today. HTC has a few new devices coming in the pipeline, including the rumored One Mini and One Max, so it might have some wind left in its sails.

WSJ

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Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...


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