Ericsson Shares Drop Most in 9 Years, What's Next?

Ericsson is facing significant financial challenges, with a recent profit warning causing a 20% drop in share price. Shareholders are pressuring the company to take action, but efforts have been limited to small acquisitions and cost-cutting measures, including job cuts in Sweden. The interim CEO has a tough task ahead, as Ericsson struggles with competition from Nokia and Huawei, and the delayed adoption of 5G technology. Economic crises in key markets like Brazil and Russia have further impacted revenue, which fell by 19%.

What was one of the main reasons for the investor backlash against Ericsson?

• The launch of a new product line

• An unexpected profit warning

• A merger with a competitor

• The company's decision to expand into new markets

What action did the interim CEO of Ericsson take to address the company's challenges?

• Increased marketing efforts

• Announced job cuts in Sweden

• Launched a new product line

• Acquired a major competitor

How did the interim CEO respond to concerns about Ericsson's future?

• By blaming competitors for the company's issues

• By promising immediate 5G rollout

• By highlighting the company's 140-year history

• By announcing a merger with Nokia

Which two companies are mentioned as Ericsson's main competitors?

• Cisco and Intel

• Nokia and Huawei

• Samsung and Apple

• Motorola and Siemens

What is one of the reasons for Ericsson's revenue decline?

• A decrease in global smartphone sales

• Increased competition from new startups

• Delayed adoption of 5G technology

• A shift in consumer preferences