Research in Motion's stock dipped below its book value for the first time since 2002 on Wednesday, highlighting the BlackBerry maker's fall from smartphone supremacy.
RIM's shares were listed at $18.91 (all figures USD) when the NASDAQ index in New York closed Wednesday afternoon -- a figure that is one cent below the telecom giant's book value per share of $18.92. That figure is from the end of last quarter, according to numbers compiled by Bloomberg.
In afterhours trading the stock was up slightly to $18.93.
The latest data suggests a decrease in investor confidence for RIM during a year that's seen a massive service outage, patchy tablet sales and wild takeover rumours.
Those pains were especially felt on Tuesday when the company's stock fell below $20 in U.S. trading for the first time since 2004. The plunge occurred against a backdrop of the company's dropping profits, but also the eurozone financial crisis and a Greek debt showdown.
The stock bottomed out at $18.55 earlier in the day.
With the bad press piling up, it's yet to be seen how RIM will return to its previously iconic tech status as company co-CEO Mike Lazaridis had pledged in late September.
"We understand that the past few quarters have been challenging," he said in a Sept. 15 conference call. "We are confident that we are on track to return to growth in Q3 and beyond."
Though the company has seen a sharp dip in profits, Lazaridis told analysts that he expected strong future sales of the BlackBerry Bold, Torch and Curve handsets.
But analyst Peter Misek with Jefferies & Co. in New York said the company faces fierce competition from other innovative tech giants.
"They are just not selling. They are not competitive," he told The Associated Press last September. "They are getting really hit hard by Android phones."
To help keep costs down while competing in a rapidly growing smartphone market, RIM announced in late July that it planned to cut 2,000 jobs this year. That figure amounts to 11 per cent of its global workforce.
Name - Rakesh prasad
PGDM -3rd
RIM's shares were listed at $18.91 (all figures USD) when the NASDAQ index in New York closed Wednesday afternoon -- a figure that is one cent below the telecom giant's book value per share of $18.92. That figure is from the end of last quarter, according to numbers compiled by Bloomberg.
In afterhours trading the stock was up slightly to $18.93.
The latest data suggests a decrease in investor confidence for RIM during a year that's seen a massive service outage, patchy tablet sales and wild takeover rumours.
Those pains were especially felt on Tuesday when the company's stock fell below $20 in U.S. trading for the first time since 2004. The plunge occurred against a backdrop of the company's dropping profits, but also the eurozone financial crisis and a Greek debt showdown.
The stock bottomed out at $18.55 earlier in the day.
With the bad press piling up, it's yet to be seen how RIM will return to its previously iconic tech status as company co-CEO Mike Lazaridis had pledged in late September.
"We understand that the past few quarters have been challenging," he said in a Sept. 15 conference call. "We are confident that we are on track to return to growth in Q3 and beyond."
Though the company has seen a sharp dip in profits, Lazaridis told analysts that he expected strong future sales of the BlackBerry Bold, Torch and Curve handsets.
But analyst Peter Misek with Jefferies & Co. in New York said the company faces fierce competition from other innovative tech giants.
"They are just not selling. They are not competitive," he told The Associated Press last September. "They are getting really hit hard by Android phones."
To help keep costs down while competing in a rapidly growing smartphone market, RIM announced in late July that it planned to cut 2,000 jobs this year. That figure amounts to 11 per cent of its global workforce.
Name - Rakesh prasad
PGDM -3rd
No comments:
Post a Comment