BlackBerry (BB): A Blast from the Past in the Market's Crosshairs

Blackberry (BB) Talking Points:

  • BlackBerry used to dominate the mobile market but gave up most if not all of their share to Apple and Android-based devices.
  • Recent attempts at revival have fallen flat but the stock began to get attention again earlier this year around the Reddit-fueled rallies.

BlackBerry (BB) stock has been less successful than GME and AMC in the aftermath of the January short-squeeze. The stock peaked around $25 per share in Jan. and now trades below $10. While BlackBerry is far past its heyday, the company does have a new flagship smartphone planned for release in 2021. Even more importantly, the company recently partnered with Amazon Web Services to create a cloud-based vehicle data platform. As autonomous vehicles and related technology advances, BlackBerry may be poised to benefit from increased adoption of its new services. The company announced lackluster Q4 earnings at the end of March and is likely to announce similar results for Q1 earnings in June.

The early-year flare was certainly a case for excitement. But, unlike both GME or AMC, the stock has been unable to hold on to much of those gains, with prices reverting back to more-depressed levels below the $10/share price.

BlackBerry (BB) Daily Price Chart

BlackBerry Daily Price Chart

Chart created by James Stanley, Source: TradingView

But, taking a step back to put that early-year flare and that more recent downtrend into perspective, and it becomes obvious that this is not the company that once dominated the mobile market. The early-year ramp now looks but a small blip in an otherwise negative long-term scenario on the below chart.

BlackBerry (BB) Monthly Price Chart

BlackBerry Monthly Price Chart

Chart created by James Stanley, Source: TradingView

— written by Izaac Brook, DailyFX Research Intern, James Stanley, Senior Strategist


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