RIM Weighs on Nasdaq; Gives Up Gains Following Storm Launch
Since launching its new BlackBerry Storm at Verizon stores across the country last Friday, shares of Research In Motion (Nasdaq: RIMM) have risen more than 9% from about $41.50 to $45.26 at yesterday's close. Given the market reaction, most traders viewed the launch as successful and a positive development, however, today, shares of Research In Motion have given up almost all of these previous gains. The stock is currently down 8.4% to $41.44.
Shares of Research In Motion seem to be dragging down the entire Nasdaq index this morning. While the Dow Jones and S&P 500 are trading up about 0.81% and 0.67%, respectively, the Nasdaq has traded in the complete opposite direction and is currently down 14 points, or about 1%.
Research In Motion may be seeing downside this morning following negative comments related to global mobile-phone sales next year. Highlighted by an article in The Wall Street Journal, analysts from Gartner Inc. issued a research note this morning saying the firm sees a dramatic drop in handset sales next year as the economic slowdown hits consumers worldwide. Specifically, Gartner sees '09 sales contracting in the low single-digit range from 2008 levels.
Other large-cap tech bellweathers are seeing downside today; Apple (Nasdaq: AAPL) is down 4.5% to $88.76, Amazon.com (Nasdaq: AMZN) is down 4.1% to $40.75, and Cisco (Nasdaq: CSCO) is down 4.8% to $15.61. Bucking its recent downside trend, shares of Google (Nasdaq: GOOG) are seeing upside today, currently trading up about 5.8% to $272.70.
Research In Motion Limited engages in the design, manufacture, and marketing of wireless solutions for the mobile communications market worldwide.
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