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What's the story? Ericsson's market momentum haunted by mismanagement
Season 2
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Light Reading's Iain Morris joins the podcast with insight into why Ericsson's stock price took a hit despite a solid second quarter.
"I was a bit surprised to see the share price, they opened at about 11% down, which is a big drop ... and normally that's the kind of thing that happens when they have a bad news item like the investigation for some of their activities in Iraq where there were various wrongdoings going on," said Morris.
Morris provides background on Ericsson's missteps in Iraq, but explains that this is an example of poor choices from previous management. While current management's efforts have righted the ship in some ways, the sins of Ericsson's past continue to make investors skeptical.
Related stories and links:
- Ericsson's market share has rocketed, yet investors are unhappy
- Ericsson gets US clearance for Vonage take-off
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