Virgin Mobile stock takes a beating, revenue not forecasted to grow
Hot on the heels of dismal news from the Helio camp comes word that frowns are all the rage over at Virgin Mobile, too. After warning that "current quarter subscriber growth would fall to a range of 5,000 to 20,000" (compared to a net gain of 210,000 in Q4) and expressing concerns that the weakness in the US economy would further harm its chances at having a stupendous decent year, shares of its stock sank some 54-percent to $2.30 (but did manage to recover somewhat). Potentially more worrisome, however, was the pessimistic views from analysts; for instance, Bear Stearns' Phil Cusick noted that after two disappointing quarters in a row, he felt that the "softening economy and increased competition had eliminated management's ability to forecast its business." Of course, when the street expects your revenue to increase by some 20-percent and you calmly explain that it downright "will not grow this year," we suppose the stock drop isn't all that shocking.
[Via mocoNews]
