After Vodafone’s decision to cut its earnings forecasts this week, the company’s share price fell 11%. But it wasn’t the only firm to suffer – former BT unit mmO2 has also seen a 7.8% fall in share price.
Investors feel that since the world’s largest mobile operator is experiencing difficulties, these problems will be mirrored elsewhere in the market.
mmO2 was hit particularly hard, since it operates in many of the same markets as Vodafone. Shares in mmO2 fell to 4.75 pence this week to reach an all time low of 56.25 pence.