1:05 PM As the euro crisis deepens, investors flee struggling vendors. Can they turn their fortunes around?

June 25, 2012

1 Min Read
Alarm Bells for AlcaLu, Nokia

1:05 PM -- The uncertainty surrounding the future of the eurozone appears to be having a crushing impact on some of Europe's under-pressure vendors, already adding to the duo's operational problems. (See this MarketWatch story for the doom and gloom in Europe's financial markets.)

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?

Share your thoughts on the message boards below.

— Ray Le Maistre, International Managing Editor, Light Reading

Read more about:

Europe
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like