Yes, RIM Stock Price Plummeted After Hours. But, 5-Year Performance Still Impressive


All Things Digital reported:

RIM Shares Tank on Lousy Outlook

John Paczkowski noted that RIM’s lower than expected earnings caused an after-hours sell-off that dragged the stock down nearly 10 percent. It actually got worse as the night wore on. RIMM (ticker symbol) lost 11.84% of its share price value in after-hours trading. Its pre-market price is at $56.50, down from $64.09, as we wait for the market to open this morning.

This isn’t surprising given what we’ve seen reported here and elsewhere about relative smartphone marketshare changes in the past year. Here’s another perspective on RIM’s situation. If you take a longer term view (say 5 years), RIM’s share price performance compares quite well with other smartphone related firms. The graph above (courtesy of Yahoo! Finance) charts relative share price performance for RIM (dark blue), Nokia (red), HP (dark green), Microsoft (orange), Google (brown), and Apple (green). And, yes, it is not entirely fair to compare a near pure play mobile device company with diversified product companies. That said, look who’s 5-year performance is second to Apple. Yes, that is RIM. Their 5-year performance is actually better than Google’s. And, yes, Microsoft’s performance is essentially flat after 5 years while Nokia’s share price reflects its lingering problems.