Shares in a number of leading NASDAQ and Dow Jones PC vendors dropped yesterday, as market analyst UBS cuts growth predictions from 12 per cent to 9.8 per cent.
A reduction in growth forecasts was enough to spark a broad sell-off of shares. Despite a recent recovery in share prices after announcing planned job cuts, HP saw its stock drop by 6.1 per cent to $40.40, prompting fears of further job cuts. Meanwhile, Dell suffered yet another blow to its share prices as they dropped by 4.1 per cent to a one year low of $14.63.
Meanwhile Apple’s share woes continue as they also hit a one year low, dropping by 8.5 per cent to $88.84, fuelled by speculation over the health of CEO Steve Jobs and concerns over US consumers’ disposable incomes.
UBS analyst Maynard Um, who was responsible for the adjustments, commented: “Although we believe there will be a material impact to consumer spending from the recent economic turmoil, not surprisingly, enterprise spending appears to be slightly more severe.”