Palm stock value plummets, some analysts peg it as worthless
It would seem that just about everyone but Palm itself know that the company has passed the point of salvation now, but will the company realize it before all of its value is gone?
Yesterday we reported on Palm’s third-quarter earnings report that, while higher than anticipated, it was still pretty bleak. Well, as the day progressed, Wall Street decided to have its say in what the earnings call meant, and it was not pretty in the least.
According to CNN Money, the stock value fell 19 percent in Friday training to close at $4.59 per share amidst multiple analysts downgrading the shares to “sell”, and even two analysts went so far as to value the stock at $0. In other words, some analysts are now saying the company is completely worthless.
While yesterday’s information told us that there was unsold stock of Palm’s phones sitting around at carriers, there was no indication of just how bad the situation was. It has now been revealed that 57 percent of all Palm phone stocks are just sitting around at the carriers right now. While Palm has said it will help the carriers to move all of that unsold stock, that is an awful lot of units to try to move.
It would seem that the company is now ripe for an acquisition, but the question is more of who it will be than “when.” There’s been some speculation that HP might give it a try, but that is nothing more than rumor at this point.
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March 20th, 2010
Perhaps the US government can bail out Palm…