• Bloomberg News, Friday, June 26, 2009 10:39 AM

Investors were buoyed by Palm's report of a smaller-than-anticipated loss yesterday, sending the stock price up 15%, Hugo Miller reports.

Older models sold better than expected but the company's fortune will rest with the success of the recently launched Pre smartphone and its new WebOS operating system, both of which have been hailed by critics.

"It's all about the rebirth of the company with the Pre," says Jim Suva, an analyst at Citigroup. "They really pulled it out of the hat with the Pre, but you've got a raft of new devices coming onto the market that will only increase competition."

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