There are days when price action in stocks provides more information than usual, all one has to do is to observe while leaving opinions at the door. Tuesday was one of those days. There were major announcements from BlackBerry as well as Nokia and Apple AAPL stock fell precipitously in the afternoon.
There were several announcements at BlackBerry Live user conference being held in Orlando, Florida. BlackBerry announced a cheaper new model to be called Q5. Q5 is directed at emerging markets and will contain a classic BlackBerry QWERTY keyboard. The phone has a 3.1 inch touch screen and looks similar to the once popular BlackBerry Curve. Other announcements included a bold step of making BBM instant messaging service available on Apple iPhones as well as phones running Google GOOG Android.
The chart compares intraday stock performance of BlackBerry to Nokia and Apple on a strong market day represented by the ETF SPY. On a day when after the open SPY went up 1.07%, BlackBerry stock fell 3.89% as shown on the chart.
Bulls had high hopes for announcements coming from BlackBerry Live. Unfortunately for the bulls, smart money was more than eager to sell to the mom and pop. Mom and pop were excited about Q5. Smart money was selling because it did not get clarity on sales trends for Z10.
Nokia had a major announcement of its own. Nokia finally decided to forsake the clunky and chunky industrial design of its previous Lumia models that otherwise supported fine specifications for the slimmer and sleeker look favored by Apple and Samsung. Nokia introduced Lumia 925, a sleek phone wrapped in poly carbonate and aluminum…Read more at Forbes