"Control + Alt + Delete." That's what one downgrade report had to say about Research In Motion's (RIMM) earnings report.
RIM shares plummeted in a dashed sell-off (to its lowest level since 2006) following a report that was "beyond disappointing" and guidance for the upcoming quarter that was worse, according to CNBC.
Revenue fell -12% from the previous quarter and now the company is facing "a lower than expected outlook" for the next quarter…with revenue, profits and gross margins all declining, according to co-CEO Jim Balsillie.
But that's nothing new. RIM has been struggling for a while now, losing market share to Apple and Google (U.S. smartphone market share fell from 30% in January to 26% in April) …and the company hasn't introduced a major new BlackBerry model since last August.
And the stock is down -52% year-to-date (the tech sector is down -1.4%). And while shares have been completely overpunished after last week's action (down -24% for the week) and valuation fell to a record low … this is not a buy. The stock has been a sell since April, and is in a long-term downtrend.
Disclosure: I have no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.