Why Research In Motion Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Research In Motion (NASDAQ: BBRY  ) jumped today by as much as 11% on hopes that the company's new BlackBerry 10 operating system will have a chance against rivals, following reports that Apple's (NASDAQ: AAPL  ) iPhone 5 is experiencing "weaker-than-expected demand" along with positive analyst comments.

So what: The Wall Street Journal reported that Apple is reducing iPhone 5 component orders and speculates that the device is seeing soft demand. If true, that could potentially give RIM some room to gain market share with its new BlackBerry 10 platform that launches on Jan. 30. -- just over two weeks away.

Now what: Additionally, TD Securities analyst Scott Penner expressed some bullishness about BB10's prospects, saying the lack of major smartphone announcements over the past couple weeks could be positive for RIM as it may be able to garner more attention with its launch. Penner also believes that BlackBerry 10 will be competitive with Apple, Samsung, Nokia (NYSE: NOK  ) , and other companies in the sector. Carriers in emerging markets are also preparing for BB10's launch.

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Read/Post Comments (8) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 14, 2013, at 4:57 PM, TimKnows wrote:

    The stock is up because it is way under valued.

  • Report this Comment On January 14, 2013, at 4:58 PM, CZZZZZZ wrote:

    Ok Fools, time to endorse this stock....you've missed the last 100% run, the bash rimm bandwagon ran out of gas 4 months ago, don't worry, steve jobs won't run rise from the grave and haunt you iSheep, he'ld probably buy a BB10 over iPhone5 anyways.

  • Report this Comment On January 14, 2013, at 5:06 PM, lukem5 wrote:

    Shoulda bought on the dip!

  • Report this Comment On January 14, 2013, at 5:34 PM, jelp2 wrote:

    After all the nonsense above^^^^^^^^^ Go BB10!!!

    Glad I bought a $6

  • Report this Comment On January 14, 2013, at 5:50 PM, Mega wrote:

    "Additionally, TD Securities analyst Scott Penner expressed some bullishness about BB10's prospects, saying the lack of major smartphone announcements over the past couple weeks could be positive for RIM as it may be able to garner more attention with its launch."

    Keep in mind that anything a Canadian says about RIMM should be taken with a massive grain of salt.

  • Report this Comment On January 14, 2013, at 5:52 PM, rukdng wrote:

    I'm not sure how many folks are aware but BB10 is just part of the equation. You might want to start looking at M2M (machine to machine) as net new additional opportunity within RIM.

  • Report this Comment On January 14, 2013, at 5:54 PM, rukdng wrote:

    @megashort... how so. I'm not sure I understand your rationale.

  • Report this Comment On January 14, 2013, at 9:51 PM, digitally404 wrote:

    @megashort: Anything an American says about Apple should be taken by a grain of salt.

    Stupid argument.

    Moving on, I'd just like to note that BB10 has become the most anticipated phone for 2013, more than iPhone 6,7,8 and Samsung Galaxy S4 (source: http://www.phonedog.com/2013/01/01/what-2013-smartphone-are-... ). I guarantee that the next iPhone/Samsung will fail to impress. It will be more faster/thinner of the SAME thing.

    Moreover, RIM is definitely undervalued, and the reason the price is going up is because the probability of BB10 success is rising. There is a positive BB10 buzz.

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