No. 2 - BlackBerry Blowup

Blackberry Blow-Up as Research In Motion Shares Tumble 7% After Hours

A weak earnings report sent shares of Research In Motion (RIMM) tumbling in after-hours trading on Wednesday. Until then, the stock had been surging – up 10% in only 3 weeks. With the corporate crowd already sold, RIMM was sure the average Joe would be equally enthusiastic. What happened?

CNBC Silicon Valley Bureau Chief Jim Goldman joins the guys for this conversation.

Dylan explains RIMM sales for the quarter were $930.4 million, while analysts were expecting $935.4 million. $5 million dollars in a number that big is a non-event, he says.

Then Dylan asks if the fundamental picture for RIMM has changed.

Jim Goldman says no and adds that RIMM is the dominant brand in smart phones. Nokia (NOK),Motorola (MOT) and Palm (PALM) can’t compete, in his opinion.

Guy Adami expects the stock will be downgraded tomorrow and thinks investors should take advantage of the dip. Guy recommends buying the stock around $120.

Tim Strazzini calls the situation a classic crowded trade. He expects to see more positive things coming from RIMM in the upcoming quarter. Tim tells investors if they buy RIMM in the next couple of days, they will be fine.

In closing, Jim calls it a quirky story and says it’s worth noting that earnings for RIMM are up 60% year over year.

Questions? Comments?

Trader disclosure:
On APR 11 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Bolling Owns Gold,Silver; Strazzini Owns (WMT)