Palm’s Future Looks Dead and Disappointing

Palm, the company behind the intelligent smartphones Palm Pre and Palm Pixi, seems to be going down, really down. The future was already seen as somewhat bleak, but after the announcement of the third quarter results, experts eye the company's share or stock value as worthless or we may want to say zero. Shares of Palm plunged almost 27% and at the filing of the news report Palm's share value was $4.16.

This is the new 52-week low witnessed by the share of the company. On the other hand Investors are becoming pessimistic about the future of the company and where would it now stand. More and more investors are seen pulling out their heavy investments as major analysts downgraded the position of the share and advised to sell. Some analysts even lowered their price targets to $0, which being a disaster already.

The third quarterly report issued by the company, Palm posted a 61 cents loss per share which even crossed the limit of 43 cent per share, analysts had predicted. One big analyst from a well known brokerage house, Ilya Grozovsky, reported, who is also one of the analyst predicting a price target for Palms Share at $0:
Palm is essentially an accelerating death spiral. They have had a tremendous problem selling their devices even at carriers like Verizon with 80 million subscribers. They keep saying, we need to market, market, market, because in their mind it's a marketing problem. But it's not about the trainees and the sales people, it's just too competitive of a space right now for Palm to make any difference.

Palm has blamed the sales slump to the sale people as according to the company, the wireless carriers don't have the exact knowledge on the phones due to which marketing and re-training of sales representatives would take place.

Even after publishing the third quarter report, the company has assured investors not to pull out as it has $500 Million cash in hand. On that statement, analysts again told that the company should not act brave on that type of money as it is going to lose it soon due to marketing and sale initiatives it is taking.