Morning Movers: Nike Surges Higher, RIM And Herbalife Sink
Shares of Research in Motion (NASDAQ:RIMM) declined 12.89 percent in pre-market trading after reporting better-than-expected financial results for the third quarter. Net income came in at $9 million (2 cents per share), compared to $265 million (51 cents per share) a year earlier. Excluding one-time items, the company posted a loss of 22 cents per share, topping estimates for a loss of 35 cents per share. Nokia (NYSE:NOK), another struggling mobile player, also gained 1.4 percent on the news.
Nike (NYSE:NKE) shares jumped 3.79 percent in early morning trading. The company reported quarterly earnings of $384 million ($1.14 per share), compared to $469 million ($1.03 per share) last year. However, revenue increased 4.7 percent to $6 billion. Analysts expected earnings of $1.00 per share on $5.99 billion in revenue.
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Apple (NASDAQ:AAPL) shares dropped 1.90 percent during early morning trading. The U.S. Patent and Trademark Office ruled the company’s “pinch-to-zoom” patent, the very same patent that Apple built its Samsung case around, was invalid. The office rejected that patent because earlier patents covered the same invention. However, the agency’s decision is only preliminary. Apple can challenge the ruling as it did when the patent office struck down another of it’s “touchscreen heuristics” patents in October.
Shares of Herbalife (NYSE:HLF) plunged 1.81 percent in pre-market trading hours. Bill Ackman from Pershing Square Capital recently disclosed a short position in the company, calling it a “pyramid scheme.” On Thursday, he explained his thesis in a three hour presentation. He claims a key part of the scheme involves Herbalife sales people making more money by recruiting other people than selling the actual products.
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