RIM Rises as Apple Falls

Yesterday, Apple posted quarterly earnings. There were many incredible numbers, but somehow Apple’s quarter—the fourth most profitable quarter from any company ever—didn’t impress investors, which sent the stock tanking 11% to well below $500 (it was trading above $700 just a few months ago).

Now, I could spend all day telling you how much I would love to spend every penny I own on Apple shares. But instead I’ll just point out that Apple’s loss is Research In Motion’s gain.

While Apple’s stock irrationally plunges, RIM is going nowhere but up. Now riding a 52-week high, the stock is up 3% in trading in today and has been surging all month.

Why has RIM been steadily climbing the ranks all January? For starters, the more people who test out the company’s next-gen mobile platform, the more people who love it.

Plus, analysts have been upgrading the stock’s rating, while investors have shown a renewed faith in RIM by buying at a risky time. For example, Jeffries & Co. analyst Peter Misek last week raised his target estimate for the Canadian BlackBerry maker to $19.50 per share—a dramatic jump from his previous $13. And he’s far from alone in his thinking.

And what RIM CEO Thorsten Heins said yesterday about licensing BB10 or selling its hardware division certainly didn’t hurt, either. It means investors are buying into a company with two great backup plans should RIM fail to remain self-sufficient.

RIM is slated to launch BlackBerry 10 in one week on January 30.

Photo: Dave Chidly, The Canadian Press