Over the past three months, the stock of Research In Motion (NASDAQ:) has staged a stunning comeback, with a return of nearly 80%. But with RIM’s latest earnings report, investors have lost their confidence again. In early Friday trading, the shares are off 18% to $11.58.
True, there was some good news in the report. RIM’s , and its cash position came to $2.9 billion, up from $2.3 billion in the prior quarter.
But all this wasn’t enough. In the quarter, RIM lost 1 million subscribers, bringing the total down now to 79 million. All in all, the competition from Apple‘s (NASDAQ:) iOS and Google
’s (NASDAQ:) Android remains intense.
What’s more, RIM will make major changes to the pricing of its services business, which accounts for a third of overall revenues. If there’s a material drop, it could be trouble for the cash flows.
Essentially, RIM is placing a mega-bet on its launch of its BlackBerry 10 smartphone operating system and devices, which hit the market on Jan. 30. If it’s not a hit, the stock will likely see further deterioration.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “” and “.” Follow him on Twitter at . As of this writing, he did not hold a position in any of the aforementioned securities.
