Digital Equipment Corp. on Wednesday became the latest technology giant to fall victim to lowered earnings estimates as its stock plunged more than $10 a share.
The stock closed down $10.625 at $96.375 in consolidated New York Stock Exchange trading, a decline of about 10%. It was the most heavily traded issue on the Big Board.
Digital’s decline came after the Maynard, Mass., computer maker indicated to analysts that its order rate in the current quarter was likely to be lower than some analysts’ expectations.
Despite success in the marketplace, the world’s second-biggest computer company after IBM has been a serious disappointment to investors. Its stock price is half its peak of $199 a share in August, 1987, which was the time of the stock market’s all-time high.
Digital’s fall followed similar drops in recent months by Apple Computer Inc., Microsoft Corp. and International Business Machines.
Analysts said there was no single factor accounting for all the reductions in earnings estimates.