If you are looking to invest in stocks, this article might just be for you, especially if you want to try the Blackberry stocks. The question that probably brought you here is, “Is Blackberry a good stock to buy now?”.
We can say that you have come to the right place.
In this article, we will not only answer your question of “Is blackberry a good stock to buy now? We will also learn how to buy blackberry stocks.
Let’s get started
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An Overview of Blackberry
BlackBerry Limited is a Canadian firm that offers intelligent security software and services to businesses and governments worldwide. It has three divisions: cybersecurity, IoT, licensing, and others.
BlackBerry Spark software platform, BlackBerry AtHoc, BlackBerry Alert, and BlackBerry SecuSUITE comprise the Cybersecurity section. BlackBerry QNX, BlackBerry Certicom, BlackBerry Radar, BlackBerry IVY. And Internet of things (IoT) apps comprise the IoT category.
BlackBerry, founded in 1984 in Waterloo, Canada, became synonymous with internet-enabled cellphones throughout the dot-com boom and even after the Nasdaq reached its peak in 2000.
BlackBerry became so addicting during the early part of that decade that some users dubbed their handsets “CrackBerry.”
In the White House, former President Barack Obama used one.
But, the business made a key shift when competition in the smartphone market heated up and BlackBerry’s sales and earnings began to wane in the late 2000s and early 2010s.
Today, the firm, managed by CEO John Chen, supplies commercial and government customers worldwide with security software and services.
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Advantages of investing in Blackberry stocks
These advantages are some benefits you would enjoy if you decide to invest in blackberry. They will aid in answering the question, “Is blackberry a good stock to buy?”
- Hardware Business Almost Gone
As previously discussed, investors have punished BlackBerry for years of poor performance. This might be coming to an end shortly. Hardware sales now account for less than one-fifth of total revenue.
There isn’t much space for additional falls from such a low base. Years of unfavorable profit and revenue comparisons have plagued the corporation.
BlackBerry will resume growing once it becomes a pure software firm. And, because of its much lower cost basis, it may even earn positive continuing EPS for the first time since 2012.
- A solid balance sheet
In terms of value, BBRY stock isn’t cheap. Revenues of less than $1 billion per year (currently declining) must support a market cap of $4.8 billion. No one would argue that 5x revenues for a slow-growing software company are affordable.
However, the corporation has a $1.5 billion net cash position. When you consider it, the company’s valuation becomes much more tolerable. Since Chen took control, BlackBerry has made six acquisitions, mostly in the security field, according to Crunchbase.
And the organization has enough cash to continue acquiring businesses. Chen’s turnaround time is longer than he anticipated. The robust balance sheet, on the other hand, provides him more time to attempt to locate the appropriate pieces to bring the software angle together.
- Investors Have Low Expectations
BBRY stock has few significant supporters after years of underperformance. Despite a recent surge, investors have sold BBRY shares again this summer.
A disappointing earnings report didn’t improve matters. However, investors may have already overpriced the stock.
Professional investors, on the other hand, are betting against BlackBerry. Currently, 39 million shares of BBRY stock are being sold short. That is 8% of the float, and it would take 11 days for the bears to cover their bets.
While it’s unclear what would be the immediate impetus for a reversal, this heightened short interest can lead to strong rallies. With BlackBerry’s expectations low, even a minor change in the company’s outlook would benefit shareholders.
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Disadvantages of investing in Blackberry stocks
Before we answer the question, Is blackberry a good stock to buy? Let’s first go through some disadvantages of buying or investing in blackberry stocks.
- Turnaround Will Take A Long Time
In 2014, BlackBerry CEO John Chen made $89.7 million. With that massive compensation deal, he became Canada’s highest-paid executive for the year.
Chen estimated that the turnaround would take roughly a year and a half when he took over. Since then, over four years have gone by. So yet, Blackberry stockholders haven’t gotten anything in return for their large investment.
- Giving Up On BB10
While it’s evident that BlackBerry’s hardware goals are mostly a lost cause at this point, investors had anticipated that something positive would emerge from the company’s once-promising BB10 operating system.
Also, management appears to have given up on it. A long-promised update was never delivered. The app market is dormant, with no publishers interested in creating new games or apps for BlackBerry 10.
With no support for popular current applications like Snapchat Inc (NYSE: SNAP), the lifespan of BB10 is severely constrained. Given the expenses of maintaining an operating system, BlackBerry may be forced to declare bankruptcy shortly.
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- It’s unclear how strong the software industry is
For the time being, the declining hardware industry has diverted investors’ attention away from the software industry. Even once the hardware distraction is removed, there may be less there than meets the eye.
Year over year sales growth is merely 12%; hardly the stuff of a world-beating software venture. The company’s QNX platform for automobiles appears to be quite promising.
However, it has only achieved a minor market share and faces stiff competition from well-funded competitors such as Alphabet Inc.
BlackBerry is also making a lot of acquisitions in the security software market. BlackBerry has established a reputation for producing the most secure products. It’s uncertain whether users will stick with the ecosystem without BlackBerry hardware.
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Is Blackberry a Good Stock to Buy
Since mid-July, BlackBerry Limited Report has been trading sideways. The Canadian cybersecurity firm’s stock is a favorite among individual investors. Aside from the stock’s meme status, many people may find the financial possibility appealing.
Despite analyst bearishness on BlackBerry, Wall Street Memes sees reasons to be bullish on the stock. We provide three factors to address the question “Is blackberry a good stock to buy?” So, without further ado, let’s get started.
An industry with great potential
The question is whether blackberry stocks have the great potential to be bought. BlackBerry has undergone a significant corporate shift recently, transitioning from a market-leading (then failing) smartphone manufacturer to a cybersecurity firm.
BlackBerry is now regarded as a top security supplier, with its solutions claiming to cover more than 96 percent of cyberthreats. Starting at the top, Statista predicts that the worldwide cybersecurity industry will reach $345 billion by 2026, reflecting a roughly 10% CAGR.
If BlackBerry remains a viable participant in the market, it will benefit from industry-wide growth tailwinds. BlackBerry appears to be well-positioned in the industry, notably in the government sector. The business claims to hold many US government security credentials and access to seven of the G7 and 18 of the G20 members.
Finally, BlackBerry’s QNX operating system architecture is used by 19 of the top 25 electric car OEMs (original equipment manufacturers). They account for 61 percent of the EV market as a whole.
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BlackBerry’s solutions
Another reason we believe that could help answer the question, “Is blackberry a good stock to buy is the new integrated blackberry solutions. BlackBerry’s solutions, which include QNX, IVY, and others, appear to be gaining popularity with the company’s clientele. BlackBerry has revealed a number of transactions that might help it generate more income in the future.
It can be difficult to assess the worth of these collaborations because they often indicate a pipeline of future (perhaps multi-year) income. Not to mention that these contract announcements are sometimes lacking in-depth, making it difficult for investors and analysts to comprehend the revenue prospect fully.
However, this may assist in explaining why, to some extent, Blackberry stock has not received the market appreciation that (some may claim) it deserves. If or when BlackBerry’s commercial negotiations yield fruit and appear in the company’s financial accounts, the stock may finally get traction.
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The meme factor
“Is blackberry a good stock to buy?” is a question a lot of investors are asking especially with its meme status. Some experts could consider BB’s meme status to be a danger.
However, the company may profit from a combination of rising retail investor attractiveness and increased short interest (the ratio was still around 8 percent as of the end of Q3, which is neither low nor too high).
BB stock appears to have gone through a gamma squeeze in early January and June, and the stock briefly surged. Similar price movements are possible as long as BlackBerry stock has a substantial fanbase on Reddit and its ticker remains among the most popular on discussion boards.
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How to buy the blackberry stock
So, for whatever reason, you’ve decided to get BlackBerry stocks. That’s an excellent starting point. Let’s see what awaits you before you formally declare yourself a BlackBerry shareholder! The approach is comparable to any company’s shares.
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Step 1: Locate a reputable internet broker.
One of the qualities of an online broker is their connection to exchanges. Because they do not have access to the NYSE, not all brokers enable you to purchase BlackBerry shares.
Needless to say, you will require a broker to access this exchange. The second most significant aspect of a broker is that it fits you.
Not all brokers enable any citizen to register an account with them; some brokers are prohibitively expensive if you only want to purchase a handful of BlackBerry shares every now and then, while others are completely free.
Step 2: Create a brokerage account.
You must establish an account after locating your internet broker. This is similar to a standard bank account, and opening one is generally done entirely online.
Some brokers make it as simple as registering a new Gmail account, while others need a few days before doing a background check on you. Instead of putting money on it, you will store your BlackBerry shares on it, thus you will absolutely need this to acquire and store BlackBerry shares.
Step 3: Make a deposit into your account.
You will be paying cash for those BlackBerry stocks. This money must first be remitted (deposited) to your broker. This is typically quite simple and quick, even easier than creating a brokerage account.
The most typical deposit methods are bank transfer and credit/debit card. Some brokers, such as eToro, allow you to deposit funds into your investing account using other electronic wallets such as PayPal.
Step 4: Purchase the BlackBerry stock.
You have the account, the cash, and the goal share price. The final step is to click the purchase button! You log in to your online brokerage, search for BlackBerry shares, enter the number of shares you want to acquire, then click buy to complete the transaction (in trading lingo: execute the buy order).
A few hints: You can select from many order kinds while placing an order. The market order purchases the share at the current market price, but the limit order allows you to select the precise price at which you wish to purchase the share.
Step 5: Review your BlackBerry posture on a regular basis.
You are not done after purchasing BlackBerry shares. It is now critical to keep track of your finances.
This essentially implies adhering to your financial strategy. If you purchased a BlackBerry share to own it for a longer period, you may attend the annual meeting and gather all of the company’s news and information.
If you want to sell it soon after the price rises, you may want to employ other position management techniques. For example, you may select the target price at which you want to sell the share for a profit, or you can set the stop-loss price at which you want to sell the share to avoid additional losses.
Points To Note Before Investing In the Blackberry stocks
As much as you might be wondering “Is blackberry a good stock to buy?” there are certain factors you must consider before venturing into blackberry stocks. Investing in BlackBerry, like any other investment, carries a certain risk. So, here are some points to look out for before investing.
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- Avoid con artists.
Unfortunately, many fraudulent “brokers” are out there looking to take your money. You should be extremely skeptical when you see binary option commercials and automatic investing algorithms that yield excellent profits.
In these circumstances, the best thing to do is decline these advertisements immediately. When purchasing shares online, use our broker recommendations.
- Diversify your holdings.
Spending all of your cash on one or two stocks is a risk. If BlackBerry fails, you will lose your whole investment.
To handle it, acquire other stocks than BlackBerry to diversify your investment portfolio. This basically implies diversifying your holdings and not placing all of your eggs in one basket. The optimal number of shares in a portfolio is between 20 and 30.
Summary
With recent developments and its venture into the world of cybersecurity, there are still some good reasons why blackberry stocks might be desirable by investors like yourself.
This post has gone over the key factors you should be aware of before investing in blackberry. It has finally answered the question, “Is blackberry a good stock to buy?”
Frequently Asked Questions
That creates some difficult calculations. The company’s future revenue will predominantly be generated by its cybersecurity and IoT solutions. BlackBerry has always been about cybersecurity at its heart. However, the business stated at its results conference that income from the cyber sector will be flat in 2022.
BlackBerry has gotten a Hold consensus rating. The company’s average rating score is 1.80, based on 1 buy, 2 hold, and 2 sell recommendations.
BlackBerry Ltd has a consensus price target of 6.50, with a high estimate of 20.00 and a low estimate of 5.00 from the 7 analysts that provide 12-month price estimates. The median estimate reflects a +19.05% gain over the previous price of 5.46.
BlackBerry’s stock price has dropped following a Disappointing Quarterly Report.
The business stated that licensing revenue will be low in the upcoming fiscal year, which plainly placed pressure on BlackBerry stock. Because of the meme-stock craze, BlackBerry shares saw multiple great moments in 2021.
Furthermore, BlackBerry’s declining profit margins, high multiples, and persistent losses suggest that the company will underperform when market sentiment becomes unfavorable. Analysts that follow BB stock anticipate a rise of more than 21% in the coming year.
References
- https://www.investors.com – Blackberry bb stock buy now
- https://brokerchooser.com – How to buy blackberry shares
- https://www.aaii.com – Is blackberry stock bb a good investment
- https://www.thestreet.com – 3 reasons to buy blackberry stock now
- https://investorplace.com – Should you buy blackberry ltd bbry stock 3 pros 3 cons
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