Prior to the release of Palm's new Pre smartphone over the weekend, the stock had run up from $3 to more than $13 in 2009. Leading up to the Pre release, dozens of market commentators said that this was a classic "buy the rumor, sell the news" trade, and they suggested selling PALM the day before its smartphone came out. Since last Friday's close, PALM is down 13 cents, so while it hasn't risen significantly, it also hasn't sold off like everyone seemed to think it would.
At the same time that Palm released its Pre, Apple decided to announce a new iPhone to try and take some of the news away from Palm. This was supposed to be another reason why PALM would trade down, but so far it just hasn't really materialized.
As shown below, PALM is up a whopping 313% year to date while AAPL is up a solid 67.2%. It will be interesting to see how these two trade going forward.
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