BlackBerry 10 Could Be “Dead On Arrival” Says Analyst
RIM didn’t need any more negative news, but they got some today. Pacific Crest Securities analyst James Faucette said the company’s new BlackBerry 10 operating system may be “dead on arrival” via a research note obtained by Bloomberg:
“We believe BB10 is likely to be DOA,” James Faucette, a Pacific Crest analyst in Portland, Oregon, said in a report. He has the equivalent of a sell rating on the shares. “We expect the new OS to be met with a lukewarm response at best and ultimately likely to fail.”
The bad news doesn’t end there:
Pacific Crest’s Faucette remains bearish. Phones with the software, due in the first quarter of 2013, will struggle to attract buyers because of an unfamiliar user interface, a lack of compatible technology and few software applications, he said. Any opportunity for a sale of all or part of the company may have passed, he said.
You can guess what happened next. Share of RIM went into free fall shortly thereafter. As I type this, the stock is down 9%.
Perhaps I’m wrong, but seeing how Apple and Google have such a lead in the smartphone market, I do not see a scenario where RIM can recover from this sort of bad news.
November 7, 2012 at 11:11 pm
The reason why the share fell had nothing to do with what the analyst said. Analysts come to their conclusions based on the information that is provided to them. I really would appreciate if we stop giving power and stop blaming blog writers or analysts. Shares fall because market players, the ones with huge pockets, make decisions .
Todays fall looked like “someone with a huge cash flow position had to raise money in a hurry and decided to sell RIM at whatever price. At the other side of the equation, the big buyer kept lowering his bid because he knew the big seller was dumping at market bid.
If I was a buyer with huge money in my account I would have grabbed as many shares as possible at a discounted price too.
The market sets the tone of a market in a share.
It’s never a newpaper article or an analyst or a blog writer.
Many times it’s the market players with huge pockets that feed the information to those who do the write ups.
It would make sense for them to do this indirectly because
the motivation is always greed greed greed.
Big bucks is always the reason why shares crash or shares surge.
When writers copy and paste the opinion of an analyst and then
say “It’s because of what he said that the share crashed”; that is a di-service to investors who can then be susceptably manipulated into following a herdish mentality .
The share crashed today because the seller wanted to sell all of his shares at any price he could get..What his reasons are we will never know because it is not me pushing on the “sell button”.
For all we know the seller may even have known who the big buyer was, and did it to give him a chance to load up; and at a discount.
Blaming a share price drop on an analyst’s opinion is absurd.
It was the market that made it fall because in real basic terms
“the seller did not care at what price he was going to sell”..He just wanted to unload a part of his position…