Research in Motion stock price is spiraling downward at the time of this posting, down 16.41% or -$9.36 per share off yesterdays close at $57.04. It’s still early, but, it is looking like it could be a pretty rough day for RIM.
Research In Motion Stock (RIMM) Getting Crushed Today
That price isn’t spiraling downward. It is in a flat out free fall.
I knew that I should have shorted RIM when I had the chance last week. Not guts, no glory…
WOW!
What caused this? This is more than a dip.
Even though BlackBerry subscriptions were up over 20%, RIM didn’t not exceed expectations by as much as the Street thought they would.
It seems like things flattened out about 10:30 a.m. EST. We will have to see what the second half of the trading day brings.
“as the Street thought they would.” Or as RIM forecasted they would?
Such day to day volatility usually means nothing; what matters is the longer term trend. RIM announced they would come in at the low end of expectations for Q4, and the market overreacted, which they tend to do in this environment.
RIM is still adding subscribers…it appears that existing subscribers are not upgrading as much as they used to, but that’s normal in this environment. But given time, customers will upgrade. What matters now is that subscribers are still growing.
In a time of economic difficulty, any negative statement will have an effect on its stock price. In this case, Rim basically said it would come in on the low end of a 300 million gap. 200 million short of the streets high end revenue expectations. The market is just very sensitive and will react harder than it has in the past. People are paranoid right now with their money.