Technology exchange traded funds could be under to pressure to end the week following Thursday’s see-saw action after Research in Motion (NasdaqGS: RIMM) slashed its full-year outlook.
The company after Thursday’s closing bell reported weaker quarterly profit and announced plans to cut jobs. Shares of Research in Motion, which makes the BlackBerry, slipped 14% in after-hours trade.
“RIM has spent several years benefiting from strong tailwinds, but we are now concerned that those winds are reversing. It is unclear whether RIM will be able to change course quickly enough to avoid losing market share to other smartphone platforms,” investment researcher Morningstar said in a recent note on the company.
One major challenge for RIM is showing “that it can develop a BlackBerry that can hold its own against current-generation iOS or Android handsets,” it added.
Research in Motion had already warned that its latest quarterly numbers would be weaker than forecast.
The stock is a component in the Nasdaq-100. An ETF following the index, PowerShares QQQ (NasdaqGM: QQQ), was on a wild ride Thursday but finished fractionally lower as a late-session bounce helped limit its loss. [Nasdaq ETF Skids as Apple Pierces 200-Day Average]
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.