Raspberries for Blackberry Maker
Battered by a long-running patent dispute and fears of competition, Research In Motion (RIMM) has had one solid defense in recent quarters: its standout growth rate.
Now that shield may be going away.
But investors and buy-side analysts aren't buying the argument. Instead, they see something much more portentous: the beginning of an inevitable slowdown in RIM's growth rates. If they're right, the development could have big implications for the company's stock price.Indeed some former bulls have recently gone short RIM shares and others are considering doing the same. You can put Scott Rothbort, president of LakeView Asset Management and a contributor to TheStreet.com's sister site Street Insight, in that latter camp. "I don't see where this company is going," says Rothbort, who currently has no position in RIM's shares. "There's no good news over at RIM." Instead, on Wednesday the company offered more bad news. The company said it expects subscriber additions in its current quarter will come in 8% lower than its expected range of 680,000 to 710,000. For its fourth quarter, the company expects subscriber additions to be 3% lower than its previously forecasted range of 775,000 to 825,000. Shares of RIM closed regular trading on Wednesday off 80 cents, or about 1%, to $66.28. Earlier in the session, following the announcement, they were off as much as 7% before bouncing back. Some investors and analysts are beginning to believe that things are likely to get worse for RIM. The slashed forecasts mark the second time in three months that the company has had disappointing news on the subscriber front. Subscriber additions in the second quarter
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV