Gateway reports poor stock

It could've been worse...

Gateway's stock plummeted 25 per cent after the company announced lower than expected revenue for the fourth quarter. The PC manufacturer has suffered a 15 per cent decline in sales over the third and fourth quarters, leaving the company with Q4 revenues of $1.16bn. Analysts expected revenue to come in at $1.39bn. Growing concerns over the company's ability to maintain or grow revenues mean Gateway has been reduced to 'junk status' and is under review by rating agency Moody's. Gateway's shares dropped $2.56 to $7.69.