Market mover: Palm

The rhythmic thud of technology stocks hitting the floor continued unabated last week with another high-profile disaster.

The rhythmic thud of technology stocks hitting the floor continued unabated last week with another high-profile disaster. Palm Inc, the US maker of hi-tech hand-held organisers, issued a profits warning, announced a 15 per cent cut in its workforce and prompted another huge fall in the Nasdaq.

Despite a couple of buoyant days at the start of last week, Wall Street confidence is in drastically short supply at the moment, and any rallies of the sort that took the Nasdaq up by 55 points last Tuesday are just waiting to be reversed.

Palm provided the perfect excuse for that when it served up its latest helping of bad news on Wednesday. Its own shares were savaged by the market, which sliced 48 per cent off its value. A year ago, Palm was trading at nearly $100 a share, but last week saw its worst one-day slide ever. This put Palm in the growing club of companies that have lost 90 per cent since the Nasdaq peak last March.

The big chip-makers, computer manufacturers and network companies have all now reported slowing sales and dwindling profits, but optimists have explained that as part of the slowdown in equipment spending by corporations, rather than individuals. Palm's products, on the other hand, clearly fall into the category of consumer spending.

Palm's results were a foretaste of bad reports to come, and gave panic free rein. The Nasdaq fell 6 per cent on the news, as computer telecoms and other consumer technology stocks fell in sympathy.

But even if the share-price mayhem was overdone, Palm's announcement gave the market a glimpse of a company in trouble beyond a general economic downturn.

Palm used to rule the handheld roost with its device, but Compaq and Handspring have both launched similar devices, which have forced Palm to massively increase its spending on developing new products.

Start your day with The Independent, sign up for daily news emails
News
people'Interview of the year' no letdown
Sport
Wayne Rooney
sportBut which sporting Brit beats him to top spot in Sunday Times Rich List?
News
Maxine Peake at home in front of a poster for Keeping Rosy
people
Arts and Entertainment
Boys in blue: Peter Firth and (right) Kit Harington in Spooks
filmHow well will Spooks make the leap from the small to the big screen?
ebooks
ebooksA special investigation by Andy McSmith
News
Royal fans covered with Union Jacks and royal memorabilia wait for Kate, Duchess of Cambridge to go into the Lindo wing at St Mary's Hospital to give birth to her second child in London, Friday, April 24, 2015.
peopleLive updates in the wait for Duchess of Cambridge's second child
Sport
Arsène Wenger (left) and Jose Mourinho have to be separated by the fourth official, Jon Moss, during last October’s Premier League match at Stamford Bridge
football
Arts and Entertainment
Tate Modern chief Chris Dercon, who will be leaving to run a Berlin theatre company
arts + ents
Arts and Entertainment
Tasos: 'I rarely refuse an offer to be photographed'
arts + ents
Arts and Entertainment
tv
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Recruitment Genius: Administrator - IFA Based

£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...

Day In a Page

Major medical journal Lancet under attack for 'extremist hate propaganda' over its coverage of the Israeli-Palestinian conflict

Lancet accused of 'anti-Israel hate propaganda' over coverage of Gaza conflict

Threat to free speech as publishers of renowned medical journal are accused of inciting hatred and violence
General Election 2015: Tories and Lib Dems throw their star names west to grab votes

All noisy on the Lib Dems' western front

The party has deployed its big guns in Cornwall to save its seats there. Simon Usborne heads to the heart of the battle
How Etsy became a crafty little earner: The online market has been floated for £1.2bn, but can craft and capitalism coexist?

How Etsy became a crafty little earner

The online market has been floated for £1.2bn, but can craft and capitalism coexist?
Guy Ritchie is the latest filmmaker to tackle King Arthur - one of our most versatile heroes

King Arthur is inspiring Guy Ritchie

Raluca Radulescu explains why his many permutations - from folk hero to chick-lit hunk - never cease to fascinate
Apple Watch: Will it live up to expectations for the man or woman on the street?

Apple Watch: Will it live up to expectations?

The Apple Watch has apparently sold millions even before its launch tomorrow
Don't fear the artichoke: it's a good cook's staple, with more choice than you'd think

Don't fear the artichoke

Artichokes are scary - they've got spikes and hairy bits, and British cooks tend to give them a wide berth. But they're an essential and delicious part of Italian cuisine
11 best men's socks

11 best men's socks

Make a statement with your accessories, starting from the bottom up
Paul Scholes column: Eden Hazard would be my Player of the Year – but I wonder if he has that appetite for goals of Messi or Ronaldo

Paul Scholes column

Hazard would be my Player of the Year – but I wonder if he has that appetite for goals of Messi or Ronaldo
Frank Warren: Tyson Fury will be closely watching Wladimir Klitschko... when he wins it'll be time to do a deal

Frank Warren's Ringside

Tyson Fury will be closely watching Wladimir Klitschko... when he wins it'll be time to do a deal
London Marathon 2015: Kenya's brothers in arms Wilson Kipsang and Dennis Kimetto ready to take on world

Kenya's brothers in arms take on world

Last year Wilson Kipsang had his marathon record taken off him by training partner and friend Dennis Kimetto. They talk about facing off in the London Marathon
Natalie Bennett interview: I've lost track of the last time I saw my Dad but it's not because I refuse to fly

Natalie Bennett interview: I've lost track of the last time I saw my Dad

Green leader prefers to stay clear of her 'painful' family memories but is more open about 'utterly unreasonable' personal attacks
Syria conflict: Khorasan return with a fresh influx of fighters awaiting the order to start 'shooting the birds'

Khorasan is back in Syria

America said these al-Qaeda militants were bombed out of the country last year - but Kim Sengupta hears a different story
General Election 2015: Is William Cash the man to woo Warwickshire North for Ukip?

On the campaign trail with Ukip

Is William Cash the man to woo Warwickshire North?
Four rival Robin Hood movies get Hollywood go-head - and Friar Tuck will become a superhero

Expect a rush on men's tights

Studios line up four Robin Hoods productions
Peter Kay's Car Share: BBC show is the comedian's first TV sitcom in a decade

In the driving seat: Peter Kay

Car Share is the comedian's first TV sitcom in a decade. The programme's co-creator Paul Coleman reveals the challenges of getting the show on the road