Tuesday, April 7, 2009
Investors to Sun: We’ve Got Another Place for You to Put the Dot You Put in Dot-com
The market today continues to have its say on Sun’s rejection of IBM’s acquisition offer. The consensus: IBM threw Sun a rope and the company used it to make a noose. Shares of Sun–which fell nearly 27 percent Monday following the collapse this weekend of merger talks with IBM–are slipping again today on fears that the company has bollixed up what may have been its only chance at salvation.
“We are preconfigured for the downturn.” Sun CEO Jon Schwartz said that about a week ago. And it appears he was entirely correct. The econaclypse is weighing heavy on Sun Microsystems. It business sullied by the financial crisis, the company warned of a much larger-than-expected quarterly loss on lower revenue after market close Monday afternoon. 
If Dell sees “further softening” in global demand for its products it’s going to need stilts to keep from sagging below water level. Shares in the company fell to their lowest point in seven years Tuesday after Dell warned of a slowdown in investment technology spending in the U.S. and abroad.
