Palm dealt another blow by an analyst - stock drops under $9

Palm dealt another blow by an analyst - stock drops under $9
It only seemed like yesterday when Palm unveiled to the world it's Palm Pre handset that featured a refreshing new platform call webOS. In the course of over a year, we've seen their handset launched with much anticipation and hope riding on its back – but during the same period, we've seen Apple strike back so quick with the iPhone 3GS and then came the wave after wave of top notch Android handsets. Lost in all of it, almost losing some of its luster during the process, Palm is still trying to move forward as it faces an insurmountable mix of opponents that seemingly have set the bar. The latest blow to Palm comes in the form of a Bank of America/Merril Lynch analyst, Vivek Arya, cutting his rating on Palm to Underperform from Buy – slashing his target price of $20 to all the way down to $10. He states in a research note that “Palm’s superior platform features have not translated into sufficient carrier support and consumer demand, and we are concerned the window of opportunity may be closing as Google’s Android ecosystem gains ground, Research In Motion revitalizes its portfolio, iPhone increases its presence, and as Microsoft reboots its efforts with Windows Phone 7.” Looking toward Q4 already, Arya expects Palm's potential for sales growth to dramatically decrease, by as much as 20 percent, when Microsoft plans to launch their latest Windows Phone 7 Series platform. Just 6 months ago Palm was looking to make a serious rebound with their stock performing at a 2 year high of $17.46 – now it has dropped to less than $9 today after Arya's stance on the company. When you look even further into the numbers, Palm has not seen a profit in more than 8 quarters.

source: Barron's via wmpoweruser

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8 Comments

1. Steven58

Posts: 80; Member since: Nov 25, 2009

too little too late... a WebOs two or three years ago would've helped them.

2. rwolf1984

Posts: 536; Member since: Jun 06, 2009

Oh Palm you will soon join your Palm Pre buddy Sprint in the bargin stock aisle. . .Stocks under $4.00

3. russi

Posts: 11; Member since: Jun 08, 2009

Ur moms stock is under $4.00

4. kilari

Posts: 49; Member since: Oct 28, 2009

C'mon man. His Moms stock can only be referred to as a Penny Stock. Don't fill him with baseless hope.

7. rwolf1984

Posts: 536; Member since: Jun 06, 2009

I love Web OS. . .I just don't like the devices and the app store needs more development. I like the Pixi over the Pre. . .I just with they made a "curve" size pixi. . .do that and make some improvements and Palm is on my radar.

5. kilari

Posts: 49; Member since: Oct 28, 2009

I'm ok with Palm being a rare OS company. I don't like being like everyone else with an iphone. However I hope they dont die out cus Android just isnt good enough on my G1 to be my primary smartphone. Also I'll never buy a NaziPhone. I dont need a million apps to fill up my memory and slow down my phone. I cant wait for the iphone to get its multitasking just to see everyone cry about how slow it runs. Reality is a bitch Apple fags.

6. rwolf1984

Posts: 536; Member since: Jun 06, 2009

upgrade ur equipment. . .i think i just read that Palm is coming to TMO soon

8. Penny Stocks unregistered

Excellent post.

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