Palm Stock Sinks on Revenue Forecast

Shares of cell phone manufacturer Palm (PALM Quote) plummeted almost 40% Tuesday after the company issued a second-quarter revenue forecast well below analysts' projections.

The company, which is struggling with slowing demand for smart-phones and other handheld products, expects second-quarter revenue between $190 million and $195 million. Analysts had estimated revenue of $330.8 million for the quarter.

Palm's stock tumbled as much as 38.8% to $1.15, as investors reacted to the company's gloomy outlook. More recently, shares were down 15.4% to $1.59. ...