RIM Rockets Higher

SAN FRANCISCO -- Research In Motion's(RIMM Quote - Cramer on RIMM - Stock Picks) strong third-quarter earnings and spectacular outlook for the current quarter should silence skeptics who may have doubted the company's potential -- and stock valuation.

RIM shares, which have soared nearly 167% in a year, had waffled in the past few weeks amid creeping anxiety that the stock could be peaking and that the company might see a slowdown in sales of its BlackBerry device.

But the Waterloo, Ontario-based company's earnings report late Wednesday points to a company firing on all cylinders, with a growth rate that seems to leave rivals such as Motorola(MOT Quote - Cramer on MOT - Stock Picks) and beleaguered Treo smartphone maker Palm(PALM Quote - Cramer on PALM - Stock Picks) in the dust.

RIM's earnings doubled in the third quarter and the company sailed past analysts' expectations.

Shares of RIM jumped $12.87, or 12%, to $119.86 in recent trading, regaining their trading level of about three weeks ago.

Despite fears that a downturn in consumer spending this holiday season and the turmoil in the financial sector could affect BlackBerry sales, RIM reported blowout holiday sales -- the best in the company's history.

Even as it expands its customer base, RIM is successfully courting the retail consumer in addition to the businesses that make up the company's traditional audience.

Although two-thirds of the company's subscribers in the third quarter were corporate, almost half of net subscriber account additions came from consumers -- compared with just over 30% a year ago.

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