Beleaguered Palm shares drop on competition fears; S&P cuts price target, ‘Strong Sell’ rating

Apple Online Store “Shares of smart phone maker Palm Inc. fell Wednesday as fears of rising competition picked up,” The Associated Press reports.

“Standard & Poor’s Equity Research analyst James Moorman chopped his price target for the company’s shares to $10 from $12, telling investors in a note that ‘the upcoming holiday selling season will be very competitive for handset vendors,'” AP reports.

“He reiterated a ‘Strong Sell’ rating on the company,” AP reports. “Palm shares fell 61 cents, or 5.4 percent, to $10.75 in afternoon trading.

Full article here.

MacDailyNews Take: Well, now, let’s fire up the ol’ iCal and see what pops up…

If you’re buying (Palm shares) now, definitely what you’re looking at is that they’re going to have the most valuable asset in the industry. At some point, somebody will want to pay a premium for that. From a products perspective, the impact on the market is probably as important as iPhone.Pacific Crest analyst James Faucette, June 03, 2009

From ludicrous fantasy to dismal reality in 5 short months. Nice “analysis,” Jimmy. Here’s how it’s done:

In our opinion, there isn’t room, nor is there a need for Palm in a market already crammed full of iPhone wannabes, to say nothing of the iPhone itself. There are more than enough pretend iPhones, thanks… Palm simply does not have the any resources which with to compete against Apple.MacDailyNews Take, January 09, 2009

17 Comments

  1. Hahaha…iPhone killer. Funny thing is, we’re now hearing the EXACT same hype about the Droid now. Apparently people are going to dump the iPhone en masse foe a heavy, blocky, chunky phone that doesn’t even have multi-touch. All because, apparently, people are just dying to tinker with their phone’s operating system all day.

  2. Palm Pre’s were pretty good against iPhone, there were enough Apple haters to be fairly successful. But the Droid is a real threat to take those Apple haters away from Pre. It will be interesting to see the battles between the G phone makers as iPhone continues unabated.

  3. BUT… But… but… they have MULTI-TASKING! Don’t you understand?!? MULTI-TASKING for gawd’s sake!!! Nobody will want an iPhone when they can have multi-tasking!!!

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