RIM Misses Targets…. Stock Nosedives….. Investors Scream In Pain

Research In Motion came out with their Q2 earnings statement. Here’s the good news. Profit for Q2 was $495.5-million, or 86 cents per share diluted, up from $287.7-million, or 50 cents per share diluted, in the same quarter last year. Second-quarter sales jumped 88 per cent to $2.58-billion from $1.37-billion last year. Here’s the bad news. Research In Motion missed the targets that the street had been predicting for the second straight quarter. The street had expected revenue of $2.59-billion and earnings of 87 cents per share. The resut? RIM’s shares got destroyed in after hours trading. As I write this, their shares are down 20% on the NASDAQ exchange. That’s got to suck if you hold RIM shares. RIM is counting on a push into the consumer market with products like the Flip and the Thunder to regain momentum and make themselves the darlings of the street again. Time will tell if that is a winning strategy.

In the meantime, this looks like a good time to buy RIM stock. It’s at discount prices at the moment.

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