A Look at Research in Motion’s Horrible Week for Shareholders
It was a tough week for Research in Motion (NASDAQ:RIMM). On Monday, the battered smartphone company received a downgrade from Hold to Reduce. A GMP analyst reduced RIM’s price target from $33 to $18 and said it came after hearing c0-CEO Mike Lazaridis’ “disappointing speech” at a developer’s conference that excluded a mention of the next-generation BlackBerry.
Fast forward to Wednesday and the company announced that it will delay the launch of its BlackBerry PlayBook OS 2.0 until February 2012. The company said the postponement comes “until we are confident we have fully met the expectations of our developers, enterprise customers and end-users.” That’s more great news for Apple’s (NASDAQ:AAPL) iPad, Amazon’s (NASDAQ:AMZN) Kindle Fire, and all the Google (NASDAQ:GOOG) Android based tablet PCs.
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The next day, two class action lawsuits had been filed by angry consumers in light of the recent four-day worldwide service disruptions: one in Santa, Ana, California federal court and a second one in Quebec Superior Court. The plaintiffs in California are accusing RIM (NASDAQ:RIMM) of breach of contract, negligence and unjust enrichment.
And if that wasn’t enough for one company in a week, on Friday, a RIM spokesperson confirmed another key executive has left, joining a number of other senior-level exits.
- Research in Motion’s (NASDAQ:RIMM) stock closed up 0.09% to $21.30 on Friday. Shares are down 63.36% year to date. The stock has traded in a 52-week range between $19.29 and $70.54.