Research In Motion Ltd (BBRY): All Is Not Well With This Tech Stock

The company’s success continued into its first quarter, reporting another 31% revenue increase, year over year.

For Apple Inc. (NASDAQ:AAPL)’s part, while the stock is in the midst of a well-publicized collapse, the company’s fundamentals remain sound. Apple recorded 45% revenue growth and 60% growth in diluted earnings per share in fiscal 2012. This year, despite the market being repeatedly ‘disappointed’ by the company’s numbers, Apple Inc. (NASDAQ:AAPL) has booked 15% revenue growth over the first six months of the year.

The disparity between Research In Motion Ltd (NASDAQ:BBRY) and Apple in particular is striking. Research In Motion Ltd (NASDAQ:BBRY) is reporting losses despite having recently released a new phone and operating system; Apple Inc. (NASDAQ:AAPL), meanwhile, is still growing despite having no new products on the market. Just imagine what Apple can do once it has the benefits of a refreshed product portfolio.

The Foolish takeaway

Back in April, I recommended that investors steer clear of BlackBerry and instead favor its juggernaut competitors. At the time, BlackBerry exchanged hands for $14 per share, and has now lost nearly a quarter of its value since that time. That sentiment is only reinforced by Research In Motion Ltd (NASDAQ:BBRY)’s recent results.

Furthermore, the statements by the CEO himself are trying to tell investors what’s really happening.  When a chief executive of a smartphone maker blames profit losses on a ‘highly competitive smartphone market’, what he’s really saying is that Research In Motion Ltd (NASDAQ:BBRY) is being beaten at its own game.  The company is simply being crushed by Google and Apple Inc. (NASDAQ:AAPL).

Growth investors should give Google Inc (NASDAQ:GOOG) clear preference, while value and income investors should prefer Apple based on the company’s low valuation and compelling 3% dividend yield. In any case, there’s simply no reason to invest in Research In Motion Ltd (NASDAQ:BBRY), which, with every passing quarter, looks more and more like a sinking ship.

The article All Is Not Well With This Tech Stock originally appeared on Fool.com.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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