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Wednesday, October 28, 2009

Garmin Shares Take Hit On TomTom, Google Threat

By Matt Egan

FOXBusiness

Shares of GPS navigation maker Garmin (GRMN) plunged more than 15% Wednesday as the shares were slammed by cautious comments from rival TomTom and a new threat from tech giant Google (GOOG).

The slide in Garmin’s stock, which has nearly tripled since hitting 52-week lows, comes after TomTom reported average selling prices for its devices last quarter that missed forecasts by 8%.

At the same time, the GPS navigation makers were under pressure as Motorola (MOT) and Verizon Wireless announced the first smartphone to feature Google’s Android 2.0. mobile operating system. The device will include Google Maps Navigation, which provides turn-by-turn voice guidance as a free feature of Google Maps.

The new Google feature will offer many of the same functions as GPS systems, including live traffic and business information. Verizon Wireless, which is co-owned by Vodafone (VOD) and Verizon (VZ), said the new phone will sell for $199.99 with a new two-year customer agreement after a $100 mail-in rebate.

Garmin’s stock was down 16.75% to $31.45 in late afternoon trading. The company, which is set to report quarterly results next week, has seen its shares surge 97% year-to-date.

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