Palm shares dip 25 percent after disappointing earnings call
By David Gonzales on 20 Mar 10Palm’s latest earnings call, in which the company announced a very disappointing $22-million loss during its fiscal Q3, has led to a 25% dip in shares. Palm stock in turn has dipped below $5 for the first time since the Palm Pre was first announced a bit over a year ago.
Morgan Joseph analyst Ilya Grozovsky’s current rating on the stock is “sell” and he was quoted as saying, “The death spiral is accelerating.” Technically, this is exactly what the 25% dip in shares means and if Palm keeps on at this downward trajectory, eventually they’re going to hit a spot where they’ll be six feet under.
What Palm is doing about it is not clear at the moment. In a letter to employees, Palm’s chairman and CEO Jon Rubinstein says:
“Our recent underperformance has been very disappointing, but the potential for Palm remains strong. The work we’re doing to improve sales is having an impact, we’re making great progress on future products, and we’re looking forward to upcoming launches with new carrier partners.
Many people believe that webOS is an excellent mobile OS, but right now there doesn’t seem to be any devices able to fully take advantage of it, or convince new users to spring for a new phone. Perhaps it’s time to release a new flagship phone? Or offer the Pre unlocked all over the world? Palm actually has plenty of choices, if they would only move.
If you liked the post, you might find these interesting too:
- Palm offers more shares for sale; Nokia interested in buying?
- Palm needs money for launching the Pre, developing other products
- Palm cashes in $83.9 million from share sale; will survive until Pre hits the market
- Radically designed Palm Treo Pro leaked early on Palm’s web site
- Palm Pre to debut in Spain on October 14 through Movistar
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