Investors did not pull any punches as they bounced out of Motorola stock on Friday. As of 2:23PM ET the stock had dropped to $18.86, a fall of $1.69 or 8.22%.
That’s about 21 cents over the 52 week low for the stock. Investors are not happy with this latest news or the lack of it. In this day and age, its one thing for a corporation to phone in disappointing numbers. However, in this situation it was more troubling as the disappointing numbers not only seemed to surprise Motorola, but even befuddle them.
It would appear that they were not on top of the situation and didn’t see this coming and that is a bigger mistake than actually missing. Businesses will go through natural cycles and consumers will change their habits. These are all normal items for consideration.
In this day and age with information systems that are supposed to be plugged in and tuned to every aspect of a company, Motorola should have had their finger on the pulse much sooner. At least they might have know when to pull out the defibrillators, but as it stood it appeared that they didn’t know just how sick or healthy their patient might be and the stock was rapidly discounted for that uncertainty.