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  5. BB: I owned Blackberry shares earlier in the year, but ended up selling in June after the stock had reached $20 per share. [BlackBerry Limited]
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Investment Q&A

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Q: I owned Blackberry shares earlier in the year, but ended up selling in June after the stock had reached $20 per share. I had previously purchased around $10 per share earlier in the year. The share price as been in a downward fall since the meme spikes. I was considering opening another position if the stock slides below $10 again. Do you see that as a good entry point? Would you say that Blackberry still has longer term potential?

Asked by Stephen on July 28, 2021
5i Research Answer:

BB is a company still in transition mode. It has used up a lot of its cash reserves (though the balance sheet is still OK), sales growth has been weak (negative) and it is still losing money. : BB's fiscal 1Q sales fell 17.1%, and weakness is likely to persist all year as lower licensing and unified endpoint management (UEM) revenue crimps growth. The company can't seem to gain traction in the security market, where it faces many well-funded rivals. Its core Spark UEM platform remains pressured, while its endpoint security sales were similarly weak. The company is trying to address this by adding to its sales team, though any boost from new hires could take up to a year. It has some potential, but a lot of patience could be needed here soon. That being said, it can be a decent trading stock, especially if the meme buyers show up again.