Palm Shares Drop on Downgrades
Shares of Palm Inc. hit a 52-week low on a double dose of analyst downgrades early this week. Three Wall street analysts issued gloomy reports for the company sending shares down to close around $8.45 Tuesday on overall sales and market penetration concerns.
The biggest blow came from longtime BOA/Merrill Lynch analyst Vivek Arya who remarked in a note to clients that Palm's newest webOS phones have seen "sluggish" sales since debuting on Verizon.
Quoted at MarketWatch, Mr Arya goes on to comment…
"Palm's superior platform features have not translated into sufficient carrier support and consumer demand, and we are concerned the window of opportunity may be closing as Google's Android ecosystem gains ground, (Research In Motion) (RIMM 70.35, +1.93, +2.82%) revitalizes its portfolio, iPhone increases its presence, and as Microsoft reboots its efforts with Windows Phone 7," wrote Arya, who also slashed his price target on the stock to $10 from $20.
MarketWatch's article is also peppered with negative comments from two other financial analysts who share some of the concerns about sales at Verizon and the pressures of the competitive smartphone landscape.
Thanks to Gekko for the tip.