Last night after the bell, the embattled Research In Motion
Unfortunately, this earnings report was not enough to satisfy the Street as a reduction in guidance for the company sent shares plunging in trading after-hours last night. The company revealed that it now expects first-quarter earnings of $1.47 to $1.55 a share on between $5.2 billion and $5.6 billion in revenue. This outlook compares with FactSet Research's consensus estimate of $1.65 a share in earnings on $5.67 billion in sales. Obviously this significant reduction in earnings, combined with greater expenses for the launch of the PlayBook -- which itself will face tremendous competition and an uncertain future -- was enough to spook most investors, as shares of RIMM sank by as much as 10%. This severe loss could hurt the broad tech sector as well, as some investors may fear that this prediction by RIMM could signal similar slowdowns in other segments of the tech world, possibly sending many tech companies sharply lower to start today's session [see all Technology ETFs here].
Due to this market reaction to RIMM's earnings report, we look for the iShares S&P North American Technology-Multimedia Networking Index Fund
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