It's Official: The Motorola Xoom Is A Flop (MMI)
According to this article from Business Insider, the Motorola Xoom could be considered a giant flop.
Deutsche Bank estimates that sales of the Xoom are only near 100,000, despite receiving heavy press and advertising, especially during the Super Bowl.
Deutsche Bank came up with this estimate after looking at the Android developer website.
Motorola Mobility (NYSE: MMI) started with high hopes after Motorola was split into two companies, and since the split, shares have underperformed drastically. Year to date, shares are down 18.3%, and if this 100,000 number is true, we could see a further downturn in shares.
Traders willing to bet that the Motorola Xoom is a flop may want to go short shares of Motorola Mobility, given that the momentum is clearly leaving this name, and it will take something drastic to turn around sentiment.
Shares closed at $23.78 yesterday.
Motorola Mobility Holdings, Inc. is a provider of technologies, products and services that enable a range of mobile and wireline digital communication, information and entertainment experiences.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.