Have you ever wondered about the BlackBerry stock price? After all, you might have thought the cell phone company was gone. However, BlackBerry is still here and you may want to consider its shares for your portfolio.
Let’s first talk about the history of the BlackBerry and its recent features. Then we explain why the telephone company’s share price rose briefly before we fell enormously. Could this be your signal to buy BlackBerry shares?
BlackBerry was the phone of choice for professionals on the go back then. When the iPhone came out, it looks like the company was walking away from the public. Still, its recent developments may convince you to invest in this technological stock.
From phones to cars and everything else that is cyber
Several years ago, cell phones did not have touch screens. Instead, they had a Numpad and a few other buttons for the menu. BlackBerry phones, however, were different.
They often had a mini-keyboard. If you see a lot of buttons below the screen, it’s probably a BlackBerry. Back then, it was a status symbol. Most of the owners were business leaders.
However, the roots of the BlackBerry company were quite humble. In 1984, Research In Motion launched the brand in a Canadian strip center. 23-year-old Mike Lazaridis was its leader.
He was an engineering genius who wanted big changes in wireless communication. His first product was Budgie. It displayed text from a wireless remote control to a TV.
BlackBerry performed well in 1990. It had a million dollars in annual revenue at the time. Lazaridis, however, wanted something more. He was aiming for a portable email gadget.
Then in 1999, the company released the first BlackBerry device ever. It was 950 and it used an AA battery. More importantly, it allowed users to send emails while on the go.
That same year, BlackBerry went public. It has released several products since then. These included the 6200 series and 7100. The latter did not have QWERTY keys.
Unfortunately, Apple released the iPhone in 2007. BlackBerry tried to keep up, but it was unable to beat its competitor with the fruit theme. As a result, the BlackBerry slowly weakened from the public eye.
Still, the business continued to grow. It ventured into different fields. Specifically, it went into cybersecurity and embedded technology. You may own devices that use BlackBerry tech!
Why did the BlackBerry stock price rise then?
BlackBerry purchased QNX, a software company of degrees from the University of Waterloo. It was a real-time operating system. You can see it in various gadgets like cars and medical devices.
What’s more, it now offers cybersecurity. It uses Cylance technology to deliver Unified Endpoint Security (UES). In short, it helps companies fight cyber attacks.
BlackBerry’s solutions enabled recent projects. Eg US Federal Government announced its technology would improve its communication systems.
On the other side of the world, Chinese EV company Xpeng also wanted BlackBerry technology. Dens Xpeng P7 uses QNX as an operating system.
Here’s one big reason why the BlackBerry stock price rose: WallStreetBets. The online group wanted to pump it like they did with GameStop and AMC stock.
It believed Wall Street and other rich people profited from failing businesses. Specifically, they wanted to sell to win money when the shares refueled.
That’s why WallStreetBets bought many of their shares. Short sellers are betting that these will go down. This would increase stock prices. But they went up and made short sellers lose money.
As a result The BlackBerry stock price gained 30% last month. It closed at $ 15.88. BB shares hit $ 20.17 at the highest level and $ 13.56 at the lowest.
The BlackBerry stock price rise was short-lived.
The value of the BB share seems to be falling steadily. At the time of writing, the stock price is too Blackberry (NYSE: BB) is at $ 12.00. Current ratings have pulled the price down.
Analysts knew that the growth in these “meme stocks” came from hype. It did not reflect the actual results of their business. You might say the same for BB shares.
Compared to BlackBerry’s actual performance, the shares were overvalued. The company’s 1st quarter earnings Press release for the financial year 2022 can explain why.
As of May 31, 2020, its revenue was $ 206 million. As of May 31 this year, it earned only $ 174 million. When income falls, it tends to pull stock prices down with it.
This may be one of the reasons why BlackBerry shares got a lower rating. From a “hold” rating, analysts downgraded it to a “sell”. This may signal retail investors to get rid of their BB shares.
The chip shortage can drag it down further.
There may be a major reason why BlackBerry stock prices. All of its solutions rely on semiconductor chips. These are the small processors found in many gadgets and cars today.
Unfortunately, lockdowns around the world caused a chip shortage. Businesses are having trouble getting enough supplies. Even Apple CEO Tim Cook admitted it would affect sales.
These will use BlackBerry technology to activate their gadgets. Without the chips, however, they cannot produce the devices. This can cause problems for their projects.
In return, people will have a hard time buying them. This means reduced sales for BlackBerry’s projects and products. Eventually, this may drag the stock price down further.
The BlackBerry stock price is not worth it, even when it is low. It is unlikely to show growth given the current situation. The stock’s low rating may turn investors off.
It’s even worse when you take into account the chip shortage. This will make it harder for BlackBerry to produce devices. Other companies that use BB tech may also have difficulty with it.
You may want to look elsewhere for better investments. E.g, blockchain shares is a good choice today. As the cryptocurrency trend rises, their prices will also rise.
Learn more about the Blackberry stock price
Is BlackBerry dead?
Believe it or not, BlackBerry is still with us. Its mobile phone setup is not so popular today. Instead, you may find its technology in different devices. They also provide cyber security.
Does BlackBerry pay a dividend?
According to the website, BB shares do not pay dividends. If you need a steady income, look at other shares. Some are in sectors that are doing well despite the pandemic.
Why is BlackBerry stock falling?
It received a low rating from stock analysts. It went from a “team” to a “sale”. Chip shortages may also have played a major role. It damages supplies to technology companies across the globe.