Why is the ERIC stock only $7 when it used to be over a $100

The stock price of ERIC (LM Ericsson Telephone) has indeed experienced a significant decline from its peak value. To understand the reasons behind this decline, we need to analyze several factors: 1. **Market Conditions and Tariff Uncertainties**: The stock price of ERIC has been affected by market conditions and tariff uncertainties between the US and the European Union. The reinstatement of reciprocal tariffs on several US trading partners has created a climate of uncertainty, which has impacted investor confidence and, consequently, the stock price. 2. **Investment in Intel's Network Business**: Ericsson's recent investment in Intel's networking infrastructure business may have led to concerns among investors about the company's financial health and future prospects. This investment could be perceived as a negative signal, leading to a sell-off in the company's stock. 3. **Historically Weak Season for Stocks**: The stock market, including ERIC, has stumbled into August, a historically weak season for stocks. This seasonal weakness, coupled with the market's response to economic data and Federal Reserve messaging, has contributed to the overall decline in ERIC's stock price. 4. **Dividend Sustainability**: There has been a discussion on whether ERIC's dividend is sustainable. This uncertainty could have led to a decline in investor confidence and, subsequently, the stock price. In conclusion, the decline in ERIC's stock price can be attributed to a combination of factors including market conditions, tariff uncertainties, investment in Intel's network business, historically weak season for stocks and the sustainability of the dividend. These factors have collectively contributed to the significant drop in the company's stock price. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |ERIC|ERIC.O|LM Ericsson Telephone|20250728|-1.0681|185| |ERIC|ERIC.O|LM Ericsson Telephone|20250729|-0.5398|185| |ERIC|ERIC.O|LM Ericsson Telephone|20250730|-2.3066|185| |ERIC|ERIC.O|LM Ericsson Telephone|20250731|0.2778|185| |ERIC|ERIC.O|LM Ericsson Telephone|20250801|0.4155|185|