If you’re a RIM shareholder right now, you probably feel as though you woke up on the wrong side of the bed this morning. RIM’s stock opened 20 points down on the Nasdaq from its close last night at $97.53, and is now hovering around $73 per share. Checking the latest financial news today, it’s clear that this fall is reflective of myriad issues, ranging from RIM’s low Q3 forecast to the general economic climate. Here’s the best reports we’ve seen so far on the issue.
MarketWatch: Research In Motion sinks on disappointing forecast
“RIM’s business model is starting to show its pressure points. The company has become increasingly dependent on hardware sales. As a result, the timing of new product launches can have a big impact on their results,” wrote Brian Modoff of Deutsche Bank in a report, in which he cut the stock to a sell rating. “We think this trend will only worsen and their numbers are now, more than ever, dependent on a steady stream of hit products.”
Yahoo! Finance: Premarket roundup: Research in Motion
Analysts were thoroughly divided Friday about the meaning of BlackBerry maker Research in Motion Ltd.’s latest financial report, while investors united in a rush to dump the stock.
The company’s second quarter earnings were disappointing, but RIM’s guidance was downright depressing. Margins will be squeezed, new subscriptions aren’t measuring up, and the sales and marketing expenses appear to be dramatically out of whack as this company tries to sell the variety of new BlackBerrys in its product pipeline.
Yahoo! Finance: ‘This Sucker Could Go Down’: Bailout Stalls, Market on Edge
“If money isn’t loosened up, this sucker could go down,” President Bush reportedly declared Thursday evening as talks over the $700 billion bailout package stalled.