Shares of BlackBerry Ltd (symbol ‘BB’) experienced heavy losses in the last quarter declining by around 35%. The company’s earnings report for the fiscal quarter ending November 2023 is expected to be released on Wednesday 20th of December, after market close. The consensus EPS is $-0.03 against $-0.06 of the same quarter last year.
‘ The company’s poor performance and the negative expectations on their earnings are fully justified if we take a quick glance at their financial statements. The current ratio is at 91% indicating the inability to overcome any short term financial turbulence while the net revenue has been on a steady decline. The total assets as well as the shareholders equity have also been declining and as of 31/08/2023 they lost around 32% and 37% respectively while cash on hand also declined by around 30%. All of these data could potentially be a warning of liquidity problems by the company in the near short term outlook and could possibly indicate that the company might be on the move to get more debt in order to finance its operations. ‘ said Antreas Themistokleous, trading specialist at Exness.
From the technical analysis perspective the price has been making some minor gains in the last month of the year in an effort to close the year in a positive outlook. The opening share price on 1st of January was $3.31 so the company will end on a profitable year overall despite the recent losses. Currently the price is testing the resistance of the combination of the 100 day moving average and the upper band of the Bollinger bands while at the same time the Stochastic oscillator is recording extreme overbought conditions indicating that a correction to the downside might be possible before the end of the year. The 50 day moving average is trading well below the 100 day moving average validating the overall bearish momentum in the market but today's session is rather important to see where it will close. This is because if it closes above the $4.25 - $4.30 area there are some hopes of the 38.2% of the weekly Fibonacci retracement level to support the price in the short term.
‘ The company’s poor performance and the negative expectations on their earnings are fully justified if we take a quick glance at their financial statements. The current ratio is at 91% indicating the inability to overcome any short term financial turbulence while the net revenue has been on a steady decline. The total assets as well as the shareholders equity have also been declining and as of 31/08/2023 they lost around 32% and 37% respectively while cash on hand also declined by around 30%. All of these data could potentially be a warning of liquidity problems by the company in the near short term outlook and could possibly indicate that the company might be on the move to get more debt in order to finance its operations. ‘ said Antreas Themistokleous, trading specialist at Exness.
From the technical analysis perspective the price has been making some minor gains in the last month of the year in an effort to close the year in a positive outlook. The opening share price on 1st of January was $3.31 so the company will end on a profitable year overall despite the recent losses. Currently the price is testing the resistance of the combination of the 100 day moving average and the upper band of the Bollinger bands while at the same time the Stochastic oscillator is recording extreme overbought conditions indicating that a correction to the downside might be possible before the end of the year. The 50 day moving average is trading well below the 100 day moving average validating the overall bearish momentum in the market but today's session is rather important to see where it will close. This is because if it closes above the $4.25 - $4.30 area there are some hopes of the 38.2% of the weekly Fibonacci retracement level to support the price in the short term.