Jim Cramer Blog

Palm stock closed slightly down Friday after surging earlier in the day on news that the company's profits grew in its fiscal third quarter, fueled by strong shipments of its Treo smart phones. Is this a trend that will continue to reveal itself, or was this unexpected growth due to the ongoing litigation of Research In Motion? The mere fact that the Blackberry service may be getting shut down is enough for businesses to not even consider going with RIMM as the connectivity of choice for their employees. Once a company begins to use a technology like the Blackberry or the Treo, many day to day operations depend entirely upon the devices working with precision. If a service like Blackberry would get shut down, the result could cause a business to be in complete disarray for days. I believe the unexpected growth of Palm will not continue because now that RIMM's legal problems are almost resolved, the consumer will focus back on the Blackberry because it is clearly the better service. Palm looks like a good short sale from here.