Research in Motion (RIM on the TSX, RIMM on NASDAQ) released their Q1 earnings after the closing bell today (April 2nd, 2008) and reported that quarterly profit was up over 100% from a year ago. However, after-hours trading yielded an increase of "only" around 5% with RIMM reaching around $123 before ending at $121.30. I say "only" because previous quarterly earnings had caused double digit increases in after-hours trading before.
Perhaps people are still a bit cautious given the climate of the US economy or they are wising up to the fact that the price pops a bit with each successive earnings release? Investor psychology plays a part in stock price movements and one could posit that after seeing all the news reports on TV tonight that many people will be bidding up the price of RIM tomorrow when regular trading resumes – after having a night to digest the news.
If you would like to learn a bit more about after-hours trading, you can read this post on it.
Speaking of trading practices, I read today that the new TSX Quantum trading system has decreased trade latencies from 20 milliseconds to 6 milliseconds and they will start migrating more stocks to the new system over time.
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