Palm shares plummet – updated (again)

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PalmAppears as though the folks at Palm have a little bit of catching up to do. Cellular News reports that Palm looked on as their stock dropped as low as 12% Wednesday evening after they announced that quarterly sales would be short, and they have their Treo devices to thank.

We’re willing to bet dropping PalmSource for their new products wasn’t the best move, and with the Pearl storming in, things aren’t looking too promising next quarter either. Insert corny joke about palm reading right about here.

Update: Let’s watch the higher-ups as they scramble and pull collars to keep the investors around. MarketWatch has put up some more information regarding Palm’s decline.

“Palm’s quarterly sales shortfall ‘highlights the perilous competitive waters in which Palm swims,’ according to Deutsche Bank Securities analyst Jonathan Goldberg. “We expect further choppiness ahead as the company struggles to keep its products — and prices — abreast of a rapidly changing market.”

Newratings has given us some numbers on this issue, which really puts things into perspective.

“In a research note published yesterday, the analyst mentions that the company has reduced its revenue guidance for 1Q07 from $380-$385 million to $354-$356 million.”