Thursday, June 18, 2009

RIMM Earnings Miss

This past Sunday I asked the question, Is RIMM Tech’s Last Breadth? It seems the answer may be “yes”.

NASDAQ futures have dropped heading into the market open tomorrow (Thursday) as the BlackBerry maker tanked after disappointing earnings.

Research in Motion (RIMM) reported after the market close and immediately free fell even after doubling its revenue to $2.24 billion from $1.08 billion last year. The reason for the slide was a disappointing forecast that left investors questioning the tech giant’s future.

Below you can see a screenshot of RIMM stock today and the impact the earnings had in after hours trading:

RIMM Earnings Miss 1

This in turn has caused the market futures to tumble as fears of a recession continue to overtake investors minds. Below is a screenshot of the QQQQ which tracks the NASDAQ 100 market index. Notice the slide after the bell:

RIMM Earnings Miss 2

The reason I posted last Sunday on RIMM stock was because RIMM was one of the few remaining tech stocks still trading near highs. Investors were holding onto the belief that a big earnings report could trigger a broader rally, proving that maybe the economy wasn’t so bad after all. Now with RIMM set to gap down at the opening bell tomorrow and no tech stocks left to lead the only index, “holding it together” the future seems bleak.

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