RIM's shrinking value
The much maligned BlackBerry PlayBook tablet has some good news to hang its hat on. It outsold the iPad 2 at some FutureShop and BestBuy locations last week.
Although it’s a small sample size and only represents one chain, it’s a welcome bit of good news for the Research in Motion.
Unfortunately for RIM though, that’s seemingly where the good news ends.
The company has seen its market capitalization — essentially how much the company is worth — fall about 90 per cent since the end of 2008.
Back then, RIM was worth about $77 billion dollars. Today, it’s worth about $7 billion.
By comparison, RIM’s main competitor has seen its market capitalization explode over this period.
At the end of 2008, Apple was worth about $175 billion. It’s nearly tripled since then to over $500 billion, making it the most valuable publicly traded company in the world.
Market capitalization is calculated by multiplying the number of shares in a company by the price of each share.
RIM shares traded around $150 in the summer of 2008, but opened Monday morning at just $13.31.
It might not get any better for RIM in the near future either. Analyst Peter Misek of Jefferies & Co. recently downgraded his outlook for RIM shares, cutting his 12-month price target to $12 per share.
Apple is also expected to announce the iPad 3 at an event on Wednesday.