Palm Plummets on Wall Street as Sale Chatter Builds

Oh, the Palm Inc. (PALM) seesaw, the fickle ways of Wall Street.

On Monday, the company’s shares closed up 17 percent on buyout talk. On Tuesday, the company’s shares closed down more than 14 percent, on buyout talk.

The industry is rife with speculation that mobile phone maker [HTC or computer manufacturer Lenovo wants to buy Palm, the PDA inventor whose fortunes have plummeted. There’s also a new report from Reuters that says Palm recently met with China-based telecom equipment maker Huawei to talk about an acquisition. Those talks took place in February, according to Reuters, and nothing has happened since.

Even though Palm has put new software on its Pre and Pixi phones, sales through carrier partners Sprint Nextel Corp. (S) and Verizon Wireless (VZ) have been disappointing. Plus, Palm is hemorrhaging money as rival smartphones – the iPhone, BlackBerry and Droid – hog market share.

Shares of Palm closed at $5.16 on Tuesday, compared to $6.04 on Monday.


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