RIM Rises as Apple Falls

Posted by Knowlton Thomas

Yesterday, Apple posted quarterly earnings. There were many incredible numbers, but somehow Apple's quarter—the fourth most profitable quarter from any company ever—didn't impress investors, which sent the stock tanking 11% to well below $500 (it was trading above $700 just a few months ago).

Now, I could spend all day telling you how much I would love to spend every penny I own on Apple shares. But instead I'll just point out that Apple's loss is Research In Motion's gain.

While Apple's stock irrationally plunges, RIM is going nowhere but up. Now riding a 52-week high, the stock is up 3% in trading in today and has been surging all month.

Why has RIM been steadily climbing the ranks all January? For starters, the more people who test out the company's next-gen mobile platform, the more people who love it.

Plus, analysts have been upgrading the stock's rating, while investors have shown a renewed faith in RIM by buying at a risky time. For example, Jeffries & Co. analyst Peter Misek last week raised his target estimate for the Canadian BlackBerry maker to $19.50 per share—a dramatic jump from his previous $13. And he's far from alone in his thinking.

And what RIM CEO Thorsten Heins said yesterday about licensing BB10 or selling its hardware division certainly didn't hurt, either. It means investors are buying into a company with two great backup plans should RIM fail to remain self-sufficient.

RIM is slated to launch BlackBerry 10 in one week on January 30.

Photo: Dave Chidly, The Canadian Press

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Since then, BlackBerry products and services have continued to change the way millions of people around the world stay connected. With the launch of BlackBerry 10, we have re-designed, re-engineered and re-invented BlackBerry. Not only did we introduce a... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more




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