As the blog site 24/7 Wall Street points out, there is already one casualty from Wednesday's iPad 2 announcement from Apple Inc. No, competitors in the tablet computer space aren't waving white flags - but a company that makes protective coverings for any number of techno-gadgets is being pummelled in the stock market.
Shares in Zagg Inc. , a small company with a market capitalization of just $180-million (U.S.), were down 21 per cent in afternoon trading, in a steep selloff that coincided with the Apple announcement. As part of that announcement, chief executive Steve Jobs made a big deal about an optional protective covering for the iPad - a so-called smart cover that will automatically put the device to sleep when it is put on the iPad, and can be folded over to make a stand.
Perhaps Zagg will continue to sell oodles of its coverings for the iPad - some of which can be personalized with photos or made of leather to imitate footballs and baseballs. But investors aren't waiting around to find out.
Analysts were certainly caught off guard. According to Bloomberg, all five analysts who follow the stock currently have a "buy" recommendation on it, with 12-month target prices ranging between $11.50 (U.S.) and $13. Zagg shares were recently spotted at $7.28.
Meanwhile, Research In Motion Ltd. is holding up relatively well amid the Apple hoopla. The shares of the company, which is releasing a competing tablet computer later this year, were down less than 1 per cent in afternoon trading.Report Typo/Error