Well played, Research In Motion (NAS: RIMM) . The beleaguered BlackBerry maker managed to post quarterly results that fell well ahead of Wall Street's bleak expectations.
Sure, the quarter wasn't great. Revenue fell 31% to $2.9 billion, and RIM did post its third consecutive loss. However, analysts were holding out for a much larger adjusted deficit on a 40% top-line drop.
Remember the oft-repeated bearish thesis calling for folks to trade in their BlackBerrys for Android and iOS smartphones? Well, RIM actually closed out the quarter with a record 80 million users, 2 million ahead of where it was just three months earlier.
RIM still needs its upcoming mobile operating system update to be a hit. The company may have the luxury of sitting on $2.3 billion in cash, but it can't afford to lose relevance. Until revenue begins to climb and deficits turn to profits, it will be premature to call this a turnaround story. However, Friday's encouraging market response to the report shows that investors may be willing to give the smartphone pioneer the benefit of the doubt.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
Groupon (NAS: GRPN) is acquiring dining discount provider Savored. Groupon is reportedly paying no more than $20 million for the site, so apparently Groupon is as much of a deal seeker as its discount-sniffing users.
The prolific worrywarts at Citron Research turned their bearish attention to Zillow (NAS: Z) , arguing that the rapidly growing real estate website operator's model is flawed and its shares grossly overpriced. Will Citron's low target price for Zillow be any more accurate than the real estate website's Zestimates?
The article A Fool Looks Back originally appeared on Fool.com.
The Motley Fool owns shares of Zillow and Baidu.com.Motley Fool newsletter serviceshave recommended buying shares of Zillow and Baidu.com. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.Longtime Fool contributorRick Munarrizcalls them as he sees them. He owns no shares in any of the stocks in this story and is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Motley Fool has adisclosure policy.
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