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Highlights
- As of August 31, 2022, the net loss for Blackberry Limited reduced to US$ 54 million.
- In Q2 2022, the net income of Cineplex Inc. was reported at C$ 1.3 million.
- As of August 31, 2022, Blackberry’s total assets decreased to US4 2,381 million.
With the rising trend of meme stocks, there has been a change in the investing game. The world is moving towards digitalization and so is the stock market. The increase in social media use has driven the rise of retail investors and hence, several stocks have risen in a parabolic fashion.
Some stocks may go through a hype due to the conversations and narratives around them. This may not be able to justify the investors’ goal in the long run. There are several forums and websites that are focusing on this strategy.
As a result, some of the stocks are overvalued. Make sure to check the financial details of the stock before selecting, because what may be favorable to others may not be favorable to you.
Here are two meme stocks with their recent financial performance:
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Cineplex Inc. (TSX:CGX)
Cineplex Inc. operates as a diversified media company with chains of movie theaters in its portfolio. The company deals in four segments-location-based entertainment, media, film entertainment and content, and amusement and leisure.
In Q2 2022, the net income of Cineplex was reported at C$ 1.3 million compared to a net loss of C$ 103.7 million in Q2 2021. The total revenue rose to C$ 349.9 million from C$ 64.9 million for the same period. The adjusted EBITDA also grew to C$ 77.9 million from net loss of C$ 16.9 million. Here, the graph shows the total market capitalization of CGX and BB.
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BlackBerry Limited (TSX:BB)
BlackBerry Limited is a software provider with a history of being the world’s largest smartphone manufacturer. The company offers its services to the enterprises in the form of end-to-end secure communication. In addition to this, it is engaged in providing protection and endpoint management to enterprises. These enterprises include-government, industrial markets, medical and automotive.
As on August 31, 2022, the revenue of BlackBerry fell to US$ 168 million from US$ 175 million on the same time of the last year. The net loss for Blackberry reduced to US$ 54 million versus net loss of US$ 144 million for the same period.
Blackberry’s total assets decreased to US$ 2,381 million from US$ 2,567 million. On the other hand, the liabilities increased to US$ 1,051 million from US$ 1,011 million.
Bottom Line:
For investing in a meme stock, it requires much more than social media trends. Apart from this, it is crucial to check with the company financials and the valuations.
Since, meme stocks fall in the category of trends, time plays a key role. To minimize the risk and maximize the growth prospect, make sure to follow the right time while investing in any stock.
As an investor, it is paramount to understand the reasons behind a stock, it is best to let it go. Investing without understanding may prove to be beneficial in the short term. While picking up your stocks go with the long-term strategy. Add the element of diversification too to mitigate the risk surrounding the portfolio.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
