Research In Motion (RIMM) and Pandora Media (NYSE:P) Spotlight

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(Best Syndication News) During regular trading today Research In Motion Limited (USA) (NASDAQ:RIMM) advanced 0.16 (+0.45%) to $35.33 per share. In after-hours the share price fell 5.07 (-14.35%) to $30.26.

As the company held their conference call after presenting their Q1 2012 earnings release, the share price began to plummet.

The earnings per share was in line with estimates. The company announced earnings of $1.33 per share and analysts expected $1.32. The problem was with the revenue and sales of their BlackBerry PlayBook. There are concerns that the company can’t compete against the market leader, Apple.

RIMM sold 500,000 units while Apple sold over 4.5 million units in their second quarter. Analysts had expected revenue of $5.14 billion. The actual number was only $4.91 billion.

Rather than use the existing Android operating system, RIMM decided to use a proprietary BlackBerry Tablet OS. They hope to have their system compatible with Android Apps in a future update.

The dismal outlook brought into question the company’s management. RIMM has two CEOs: Jim Balsillie and Mike Lazaridis.

Morgan Keegan cut the company’s rating today while Avian Securities LLC said they will take the stock at $35, moving neutral to positive.

The share price of Pandora Media Inc (NYSE:P) fell $4.16 (-23.88%) to $13.26. In after hours the stock dropped another 54 cents (-4.07%) to $12.72.

The company just started trading on the New York Stock Exchange (NYSE) Wednesday. With 159 million shares outstanding, their market capitalization is now just $1.9 billion.

There are some investor concerns. Every time a song is played on their network, a royalty needs to be paid. The company reported $90.1 million in revenue the first quarter of 2011 but lost $300,000.

BTIG analyst Richard Greenfield gave the company a price target of $5.50. People listening to music don’t always see the ads, according to Greenfield. As listening shifts from computer to mobile, users will be listening to audio ads. This can be a problem.

The company touted the benefits of their service. They offer users up to 100 customized radio stations. Advertisers can reach millions of people one at a time in ways that broadcast radio can not. The company says they have 90 million registered users.

By: Dan Wilson



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