Why Blackberry (TSX:BB) Stocks Continue To Draw Investors’ Attention?

Summary

  • BlackBerry stocks have been on a bull run, seeing high growth in the past one month.
  • In the past month, BlackBerry stock prices surged more than 100 per cent.
  • BlackBerry specializes in software solutions, protecting end-to-end services and Internet of Things, and a darling among cybersecurity stocks in global markets.

 

BlackBerry stocks (TSX: BB) pulled off a spectacular show on the stock markets over the past fortnight, but how much of it is hype, and how much of it is based on fundamentals?

While the stock continues to draw investors’ attention, it is apparent that its continued momentum after the Reddit blast only goes on to show there could be more than what meets the eye.

From Google, Yahoo to media trends, BlackBerry continues to be a darling among all cybersecurity stocks in global markets. The company specializes in software solutions, protecting end-to-end services and Internet of Things.

So, what propelled BlackBerry stocks from a sluggish start in December to an unprecedented high now? A few factors can be considered before assuming its exponential run entirely on social media.

 

BlackBerry’s Resurgence

 

The stocks of this Canadian company saw first some movements in December when it entered into an agreement with Amazon to build a cloud-based platform based on its famed QNX system.

By mid-January, it saw its stocks gained further momentum after it sold some of its patents to Chinese telecom Huawei. At that time, it had also managed to settle an old patent-related violation with Facebook.

The case dated back to 2018 when the company sued the social media giant over alleged infringement of its mobile messaging patents.

By late January, BlackBerry had also announced another major deal with Baidu, which allowed the Chinese tech giant to use the QNX platform for in electric vehicles navigation system.

But the latest push, by far the biggest, came from social media, mainly Reddit, where retail investors shorted the stocks for short-squeeze and big bets in late January. Although the prices have since been stabilized, the interests among the potential investors for the stock continue.

The stocks had touched a five-day high of over C$36 at noon on January 27.

In the past month, BlackBerry stock prices surged more than 100 per cent, and in the last year by over 103 per cent. Most of these gains, however, were accumulated in the last month.

In the fiscal ending February 2020, the company’s revenue grew by 15 percent, helped mostly by acquisitions and patent licensing incomes. However, its revenue had declined by 10 percent in the first nine months of 2021 fiscal due to the pandemic disruptions.

@Kalkine Image 2021

BlackBerry’s Stocks (TSX:BB)

 

BlackBerry stock was priced around C$16 at 9.56 am ET on Tuesday, which was down nearly 11 per cent up from the previous close. This latest downfall could have been triggered due to the recent downgrade of its stock by Royal Bank of Canada Capital Markets, which says that its latest rally doesn’t support its long term

 

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