- Associated Press - Friday, December 21, 2012

NEW YORK (AP) - Shares of Blackberry maker Research in Motion slumped more than 16 percent Friday with future revenue coming into question and a declining number of subscribers.

RIM’s stock jumped initially Thursday when the Canadian company released better-than-expected third-quarter results and a stronger cash position.

Shares reversed course during a conference call later, when executives said that the company won’t generate as much revenue from telecommunications carriers once it releases the new BlackBerry 10.

Student says teacher yanked 'Women for Trump' pin off chest, files police report: 'It's not OK'
Devin Nunes calls for House probe of 42 Obama-era anti-Trump activists
Obama DOJ declined 'defensive briefing' for Trump campaign on Russia

RIM’s stock had been on a three-month rally in which the stock more than doubled from levels not previously seen since 2003.

“Despite a solid quarter, the stock is trading down due to the introduction of a lower enterprise service tier and fears that RIM will not receive monthly services revenues for consumer BB10 subscribers,” said Jefferies analyst Peter Misek. He thinks RIM has offered carriers a lower-priced option in exchange for a bigger purchase commitment for the new device. He kept his “Hold” rating.

Sterne Agee analyst Shaw Wu kept maintained a “Neutral” rating on the stock, but lowered his earnings estimates, saying he continued to be concerned about RIM’s ability to compete with Apple and Google.

Shares of Research in Motion Ltd. fell $2.29 to $11.83 in morning trading.

Sign up for Daily Newsletters

Manage Newsletters

Copyright © 2019 The Washington Times, LLC.

Please read our comment policy before commenting.


Click to Read More and View Comments

Click to Hide