A major blow for chip machine manufacturer ASML in Veldhoven.
Due to accidentally published quarterly figures, ASML's share price plummeted on the Amsterdam stock exchange on Tuesday. The company's market value was worth billions of euros less. It was ASML's biggest daily loss since 1998. The share price continued to fall on Wednesday. What does this mean for the company and for investors? Experts explain.
Due to a technical error, the quarterly figures of the chip machine maker were published too early on Tuesday. Immediately afterwards, the share on the Amsterdam stock exchange went into free fall. At the end of the day, a share cost 668.10 euros, almost 16 percent less than the day before. On Wednesday morning, the share on the stock exchange fell another 5.5 percent in value.
This is because the quarterly figures of the chip machine maker were disappointing. ASML received far fewer orders than expected. "Chip machines are ordered well in advance, so ASML has a good view of what they expect to sell in the coming period. But the number of orders was on the low side now," explains Ivo Breukink. He is a stock analyst at investment platform IEX and keeps a close eye on ASML.
But according to him, it was mainly the company's turnover forecast that was so disappointing. "The turnover that ASML expects to achieve next year has been adjusted downwards. That was mainly a major setback. Normally, ASML increases that profit forecast. So this was very unusual," Breukink continues.
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