PC and laptop maker Acer has suffered a major setback yesterday as its stocks declined by almost 6 percent following reports of the company’s overwhelming NT$4.3 billion loss in Europe during the first quarter of fiscal 2011.
It was also reported that a huge number of shares changed hands, thus raising speculations about the company buying them back in order to prevent any further damages.
According to market observers, investors lost their faith in the company not for only its poor performance in the Q1, but also for the raising fear of the trend continuing in the second quarter also.
However Acer bosses kept on insisting till last week that the company is likely to register a decent 1.5 percent growth in revenues during the second quarter of the current fiscal year. Acer made this claim while briefing overseas institutional investors last week.
“Acer had been strong in the commodity PC market given its aggressive pricing, but the PC market is changing, with most users buying products for a good experience, instead of on the basis of low pricing,” Calvin Huang, an analyst at Daiwa Securities Group Inc., gave his views (opens in new tab)on this declining performance by Acer.