Alarm Bells for AlcaLu, Nokia
Alcatel-Lucent (NYSE: ALU)'s share price is down by more than 7 percent Monday to $1.54, giving the company a market capitalization of just $3.5 billion, less than the company booked in revenues in the first quarter of this year. (See Bad Start to 2012 for AlcaLu.)
Nokia Corp. (NYSE: NOK), meanwhile, has seen more than 9 percent of its value wiped out today as its share price dropped to $2.17, giving it a market value of just more than $8 billion. The Finnish giant is in crisis mode and is now trying to cost-cut its way out of trouble as speculation mounts that the rump of its business might end up in Microsoft Corp. (Nasdaq: MSFT)'s hands. (See Nokia Cuts 10,000 Jobs, Restructures and Nokia Poll Update: Farewell Independence? )
So, are these telecom industry giants already beyond help and heading the way of Nortel and Motorola? Or can they turn their fortunes around and revitalize their businesses and share prices?
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— Ray Le Maistre, International Managing Editor, Light Reading