September 26, 2008 / 1:39 PM / 10 years ago

RIM stock sinks in opening trade after results

(Figures in U.S. dollars unless noted)

OTTAWA, Sept 26 (Reuters) - Research In Motion Ltd RIM.TO RIMM.O shares sank more than 20 percent in opening trade on Friday as investors digested a warning that current-quarter profit will lag estimates as the company spends more money developing a new crop of BlackBerry smartphones.

RIM, which reported second-quarter results after the market close on Thursday, also forecast weaker-than-expected gross margin. That prompted a host of analysts to downgrade the stock, including Deutsche Bank’s cut to “sell” from “hold,” and sparked a 20 percent stock drop after markets.

Shares fell 22.5 percent to $75 on Nasdaq and 23.5 percent to C$77.46 on the Toronto Stock Exchange in opening trade. ($1=$1.03 Canadian) (Reporting by Susan Taylor; Editing by Frank McGurty)

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