Mako reduces surgical robot sales predictions, investors pummel stock

You can almost predict what will happen when a company announces that sales for a crucial product will be lower than expected: Investors will punish the stock. That very thing happened Tuesday to Mako Surgical, a maker of robotic devices that help surgeons perform less invasive operations. As Reuters reports, the company warned that it would sell fewer units than expected of its RIO System robot, which is used for minimally invasive knee procedures (42-48 of the devices, instead of 52-58). In response, shares fell 43% on the Nasdaq to close Tuesday at $14.01. Earlier in the day, when the price was slightly higher, Reuters noted the drop as a one-and-a-half year low. Why the extreme fear? The article explains that analysts are worried that the sale reflects a larger trend: that Mako is struggling to find buyers for its products. Story

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