After surprising analysts with a profit twice that which was expected, and a very positive forecast for the upcoming year, PalmOne's stock surged Tuesday to $29.36, a 36.81% increase. Volume of shares traded was 17 times the normal average. This is a 52 week high for PalmOne; infact, PalmOne has not seen its stock price that high since July 2002. During the day, the stock went above $30, hitting $30.80, a 43.5% increase. Rounding out the statistics, PalmOne's current market capitalization is 1.36 Billion Dollars.

This large jump in stock price can be attributed to the release PalmOne's financials on Monday. PalmOne reported a profit of $0.27 per share for the quarter, and for the year of 2004 a loss of $0.55 per share. However, a positive outlook was given by PalmOne's executives for the future. Specifically, they are betting their future on a new family of Treos. In a conference call with investors (more details in an article to come), PalmOne executives predicted that within a year a family of Treo Smartphones will bring in 50% of PalmOne's revenue. They are predicting that these sales will lead to a 32% revenue growth, and a year end profit for 2005 of more than $1 a share.

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