RIM Shares Try to Shake Off Warning

Updated from 9:16 a.m. EST

Shares of BlackBerry maker Research in Motion (RIMM Quote) came off their worst level Wednesday and approached the flat line despite a profit warning that had initially rattled investors in the technology sector.

After being down more than 5% early, RIM was recently lower by just 1.3% at $36.84. Still, the stock is well beneath its 52-week high of $148.13, and when trading began it breached its worst level of the past year, falling to $35.09.

The Nasdaq Composite took a hit out of the gate, but the index rebounded to trade up 1.6% to 1473.

Despite the recovery, the news from RIM was another signal that consumers are becoming more selective about their purchases amid the downturn in the U.S. RIM said it was forced to cut its third-quarter revenue and earnings forecast because of the strong dollar and the weak U.S. economy.

As a result, the Canadian handheld-device maker now expects adjusted earnings of 81 cents to 83 cents a share for the quarter ended Nov. 29, down from its previous projection of 89 cents to 97 cents. On average, analysts had been calling for earnings of 91 cents a share.

Following the new guidance, Goldman Sachs lowered its price target on RIM to $62 from $68 and removed it from the firm's Americas Conviction Buy List. However, it maintained a buy rating on the stock.

Shares of other phone and device makers were mixed. Palm (PALM Quote) was dropping 17.8%, while Apple (AAPL Quote) was up 1.2%. Nokia (NOK Quote) was losing 1.8%.

Ericsson (ERIC Quote) was gaining 5%, and Motorola (MOT Quote) was slipping 0.7%. (Photo gallery: Smart Phones)