Research In Motion Ltd. stock bounced back Thursday from some of the heavy losses it suffered last week when the issue got hammered after the BlackBerry maker disclosed a change in the fee structure for services used with its smartphone devices.
On the Toronto Stock Exchange, RIM shares jumped $1.20, or 11.43 per cent, to close at $11.70.
RIM shares had gained ground Wednesday on U.S. markets while the Toronto Stock Exchange was closed and the TSX followed Nasdaq’s lead on Thursday.
In New York, RIM shares initially continued to move higher Thursday but later retreated and closed down 6 cents (U.S.), or 0.55 per cent, at $11.76.
The stock had plunged about 25 per cent last week as analysts raised concerns about less revenue from the lucrative service fees charged by the company to use its secure network.
The stock had been on a roll most of December on rising optimism about the new BlackBerry 10 lineup, which is being launched at the end of January.
RIM, which hopes to revive its fortunes and reinvent itself via the launch of a brand new line of BlackBerry 10 devices next month, caught investors off-guard last week on its quarterly conference call, when it said it plans to alter its service revenue model – a move that will pressure the high-margin business that accounts for about a third of RIM's sales.
Analysts also expressed concern about the decline in RIM's subscriber base.
"The early reaction was probably just 'Hey, numbers looked OK, better loss, the cash flow was good' but if you know the company, you're looking at the subscriber base falling off," said Mark McKechnie at Evercore Partners in San Francisco.
RIM's shares had for weeks been on a tear as optimism around BB10 grew.
With files from Reuters
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