Is Palm Inc. the Bill Clinton of the tech world? As in, Teflon?
The device-maker reported abysmal earnings for its fourth quarter on Thursday—losses of $91 million, double that of a year ago. And investors rewarded the cash hemorrhaging with…a double-digit rise in share price. Shares shot up almost 17 percent to $16.36 in Friday afternoon trading.
The Cloak of Invisibility power could come from the fact that the Palm Pre launched to great buzz and good reviews, resulting in 100,000 units sold in its first weekend.
Even so, the investor confidence is perplexing in some ways. The Pre faces tough competition: Apple sold 1 million iPhone 3G S units in its first weekend, as a comparison point.