Deutsche Telekom Stock Falls On Profit Warning
Deutsche Telekom’s stock fell almost 7 percent in afternoon trading after it warned that it was feeling the effects of global recession and lowered its profit forecast for the year. The company warned that EBITDA (earnings before interest, taxes, depreciation and amortization) could fall in between 18.7 and 19.1 billion euros ($24.7 billion) after initially forecasting 19.5 billion euros, FT.com reports.
The company
I think DT's stock dropped due to global recession. According to FT.com report "DT is planning to install new management at its underperforming UK business. Hannes Wittig, analyst at JPMorgan, said DTâs weakness could prompt it to sell the UK business."