Palm stock rallies 11% after Verizon iPhone not announced
Everybody and their mother thought that a Verizon iPhone announcement was a sure thing for Wednesday’s Jobsnote. While the magical and revolutionary (Steve Jobs’ words, not ours) iPad was unveiled to an overhyped public, the iPhone for Big Red was nowhere to be seen, not even as one of Jobs’ famous “Oh, one more thing” moments.
Judging by the depressed price of Palm’s stock that morning, investors seemed to feel the same way, pushing Palm’s stock down nearly 3% by the time Jobs took the stage. But by the time the iPad presentation was wrapping up, investors had come to see that Apple’s relationship with AT&T was still strong. The iPad was going to be available with pre-paid data service from AT&T, and using 3G frequencies not available on T-Mobile, the only other GSM carrier in the United States. That alone was enough to trigger a rally in shares of PALM. The stock gained 11% from the day’s low to peak at $11.98 a share, though it eventually settled down at $11.70 by the close of the market. That was a 4.7% gain from the open and a rally of close to 8% from the low of $10.75. For what its worth, Apple’s stock was up a hair under 1% for the day, but it only trended into positive territory after pricing for the couldn’t-possibly-live-up-to-the-hype iPad was revealed.
With neither the iPad nor the iPhone coming to Verizon (or any other US carrier besides AT&T), Palm’s positioning on Verizon with the Pre Plus and Pixi Plus appears to be secure for now. That is, until the Nexus One arrives.