The BlackBerry PlayBook is not expected to be released until early 2011, and this news has sent RIM shares tumbling 3.4 percent.
This news saw investors trying to claw back some of the company’s stock following recent gains. The new deice has been well received by analysts, but with the delayed release it will be tougher for it to make an impact on the market the iPad already dominates.
Jane Snorek a technology analyst from First American Funds in Minneapolis, Minnesota said “If you’re bullish on RIM, you’d want the tablet to come out before Christmas.” By the end of the morning RIM’s stock was down $1.61 at $46.75 on NASDAQ, on the Toronto Stock Exchange stock was also down C$1.71 at C$47.96.
The stock had originally gained seven percent in the week leading up to PlayBook’s announcement, and according to Matt Thornton an analyst at Avian Securities who said “I think a lot of people expected the tablet product to be announced, so the stock reacted fairly favorably into the announcement.” and added “Then, quite often what you’ll see, is traders have done what they wanted to do so they sell the news once it’s official.”
Source: abc News