Research in Motion's shares rise as bullishness surrounding the impending BB10 launch goes through the roof; could Research in Motion's much needed break be in sight?
Research In Motion Limited (USA) (NASDAQ:RIMM) (TSE:RIM)’s shares surged 10% percent and are trading at $14.94. The telecom big wig’s stock, which has more than doubled since September last year, is projected to rise even further in light of the swelling bullishness surrounding the impending BB10 launch. Today’s surge not only builds on Friday’s 14 percent rally, but also signals a steady increase in investor’s expectations. Within the first 30 minutes of trading, the volume on the Nasdaq was roughly equal to the entire day’s average for the past three months.
To further accent the overriding bullishness, major carriers in the U.S have thrown their weight behind the Blackberry 10. This was clearly demonstrated by Sprint Nextel Corporation (NYSE:S), which at the Las Vegas Consumer Electronics Show, showed its support for the Blackberry 10.
While current market conditions present a good selling point for current investors, many investors will not be willing to let go at this point. Analysts project an even steeper price increase once the Blackberry 10 gains momentum. Research in Motion also received a slew of upgrades late last year, most notably from Jeffries, with analysts from the firm pegging the handset maker’s future success to the Blackberry 10.
Apple’s recent mishaps present a good leeway
Although Apple Inc. (NASDAQ:AAPL) presents one of the biggest bottlenecks to the Blackberry 10, Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) could very well have a good leeway, considering Apple’s past rickety performance in the stock market and, more notably, in the consumer market. In addition to Apple’s stock plummeting, the formidable smartphone maker is experiencing demand issues with its flagship iPhone 5. Japan’s Nikkei newspaper reported today that Apple tightened up on its orders for iPhone 5 screens; a move that is suggestive of thinning demand for the device.
As if to capitalize on Apple’s rickety situation, Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) is going the extra mile to ensure that it minifies the gap between itself and bigger competitors like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). Over the weekend, the Waterloo, Ontario-based company ran two events for app developers. As a result of these events, the Blackberry 10 added 15,000 apps in just two days. This move, coupled with the move to offer the BB10 in advance to select customers, is indicative of Research in Motion’s swelling desire to make significant inroads into the smartphone market.