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Smartphone Users Now Looking Beyond Email; Analyst Concerned with RIM's LT Prospects

January 4, 2010 3:40 PM EST
RIMM Hot Sheet
Rating Summary:
    5 Buy, 32 Hold, 14 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
As reported this morning, an analyst at GMP Securities downgraded shares of Research In Motion (Nasdaq: RIMM) from Buy to Hold today. The stock is seeing some downside pressure as the analyst makes several good points related to RIMM's long-term prospects (although the firm does believe the near-term growth story is still intact):
  • smartphone technology seems to be aiming past email. As we all know, a BlackBerry's "push" email is probably its strongest selling point.
  • consumers are looking for a wider variety of capabilities, for example, media content and entertainment.
  • to this last point, Research In Motion's BlackBerry lags the Apple (Nasdaq: AAPL) iPhone and also looks like it will undoubtedly be inferior to a Google (Nasdaq: GOOG) smartphone.
  • prospects for increased competition might put pressure on BlackBerry service fees.
Shares of Research In Motion are currently down 2.4% to $65.92.

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