Beleaguered handheld pioneer Palm got slapped by Wall Street on Friday.

Financial analysts downgraded Palm shares following its lackluster earnings report that highlighted concerns over sales of its Pre smartphone and forward-looking revenue guidance.

Investors pushed Palm shares down $1.55, or 27 percent, at $4.10 in midday tradding.

Palm reported earnings that included disappointing sales of it Pre smartphone in the quarter as well as a lower-than-expected revenue forecast in the current quarter. The news led numerous financial analysts to downgrade the stock and question the company's viabiltiy as a going concern.

Palm's earnings news renewed speculation that the ailing company is in the position for a takeover. Kaufman Brothers analyst Shaw Wu, among those to downgrade Palm shares, predicted "the company could get sold but could be a take-under," among other options.

Past speculation over a suitor to Palm has included Nokia as industry analysts point to the lack of a blockbuster smartphone in the portfolio of the Finnish phone maker.