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Current DateTime: 01:50:36 23 Nov 2009
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D-Day For Droid?
Published: Thursday, 5 Nov 2009 | 5:36 PM ET
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By: Lee Brodie
Web Producer

Gadget geeks like us can’t wait for Motorola [MOT  Loading...      ()   ] to release the new Droid phone on Friday. We just love playing with all those new features.

But investors want to know something far more serious. Is the Droid about to steal market share away from Apple [AAPL  Loading...      ()   ] or RIM [RIMM  Loading...      ()   ]?

So far the reviews would suggest that’s entirely possible.

Our news partner, the Associated Press says, the Droid stands out from the crowd of iPhone wannabes with a slim but weighty body, noticeably angular look and large touch screen.

Its 3.7-inch screen is bigger than the iPhone's 3.5-inch one, and the extra real estate really makes it easier to navigate Web pages and play with applications.

It also offers plenty of space on the home screen (and two side screens that you swipe to see) for software "widgets" that give a quick look at such things as your friends' Facebook status updates or the song you're playing on the built-in music player.

And the Droid's cost is comparable with the iPhone's — $200, after a rebate, with a two-year service contract with Verizon Wireless, its exclusive U.S. distributor.

Sounds impressive, but how much of the good news is already baked in?

I don’t know if it's all baked in, but it seems to me like the company has a steep curve ahead of it, speculates CNBC’s Silicon Valley Bureau Chief Jim Goldman. Motorola needs to figures out a way to get a million of these things sold. And Motorola is already trading at an enormous premium compared to RIM and Apple.

Also, Apple and RIM aren’t reliant on someone else’s software in the way that Motorola is, adds Joe Terranova. (Motorola relies on Google.) Maybe MOT gets to $10 but I don’t think it’s the same story as Palm [RIMM  Loading...      ()   ].

Also it’s worth noting that the Droid comes with a GPS that can dock right in your car. That probably has Garmin [GRMN  Loading...      ()   ] and Tom-Tom[TOM2  Loading...      ()   ]  scared, adds Goldman.

What do you think? We want to know!






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Trader disclosure: On November 5th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (GS), (OIH), (CAM), (MA), (JOYG), (RIMM); Najarian Owns (LAZ), Is Short (LAZ) Calls, Owns (LAZ) Puts; Najarian Owns (RIMM) Call Spread; Najarian Owns (SBUX), Is Short (SBUX) Calls; Najarian Owns (UUP) Calls; Najarian Owns (YHOO), (YHOO) Puts; Najarian Owns (ESI) Calls; Grasso Owns (AAPL), (ABK), (ASTM), (BA), (BAC), (C), (COST), (CSCO), (FAZ), (PFE), (PRST), (WMT), (V)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of  (DLR)
Virtus Investment Partners Owns More Than 1% Of  (EXR)
Virtus Investment Partners Owns More Than 1% Of  (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBC)
Virtus Investment Partners Owns More Than 1% Of  (DBV)
Virtus Investment Partners Owns More Than 1% Of  (UA)

For Steve Grasso
Stuart Frankel Corp. And/Or Partners Own (AIZ)
Stuart Frankel Corp. And/Or Partners Own (CMCSK)
Stuart Frankel Corp. And/Or Partners Own (CUBA)
Stuart Frankel Corp. And/Or Partners Own (DVN)
Stuart Frankel Corp. And/Or Partners Own (GERN)
Stuart Frankel Corp. And/Or Partners Own (HSPO)
Stuart Frankel Corp. And/Or Partners Own (NWS.A)
Stuart Frankel Corp. And/Or Partners Own (NXST)
Stuart Frankel Corp. And/Or Partners Own (NYX)
Stuart Frankel Corp. And/Or Partners Own (PDE)
Stuart Frankel Corp. And/Or Partners Own (PRST)
Stuart Frankel Corp. And/Or Partners Own (RDC)
Stuart Frankel Corp. And/Or Partners Own (ROK)
Stuart Frankel Corp. And/Or Partners Own (TLM)
Stuart Frankel Corp. And/Or Partners Own (XRX)
Stuart Frankel Corp. And/Or Partners Own (SDS)
Stuart Frankel Corp. And/Or Partners Are Short (QQQQ)
Stuart Frankel Corp. And/Or Partners Are Short (CL)


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