Believe it or not, but BlackBerry maker Research in Motion (RIM) has managed to topple Apple, Samsung and Microsoft to become the hottest technology stock over the past week. The company has been in doldrums during the past few months and their stock price had plummeted badly. In fact, it has reached a new year-low on September 24. However, this past week saw the company’s stock rally and show signs of strength, reaching its highest level in six months.
Not too long ago, the market experts were debating whether RIM would suffer the same fate as Palm. If the latest earnings report is to be believed, this doesn’t seem to be the case. On the other hand, the rise in the stock price is a sign of increasing investor confidence, something the company had all but lost. While it is premature to say whether RIM is well and truly back, the performance of its stock surely is good news for the company.
The reason why the stock has rallied over the past couple of weeks is the unveiling of the new BlackBerry. The BlackBerry 10 has finally been revealed to market insiders. Though RIM is yet to put a date on its release, the initial reports suggest it would be launched to the public in the next six months. The stock may go up further if the new device from the company receives rave reviews from the critics and analysts.
The stock prices for RIM have gone up by almost 80% over the past two months, which goes to show how low they had fallen. The company was trading around $6 in September but since has recovered to go up to almost $12. Goldman Sachs attributes much of this recovery to short-term interest from buyers in the market. Their claim might hold some substance as it has only been four years since RIM hit its peak stock price of $148.13.
Over the years, the company has taken a battering from Apple, Samsung and other smartphone makers. The newer and flashier designs caught on big time with the public, making the BlackBerry all but obsolete. Even the people who used it for business purposes abandoned it in favor of other phones. So, if the company can ride this current wave till they launch the BlackBerry 10 next year, they might recover completely from the slump they encountered earlier this year.
[Image via gadgetsin]