BB
*THIS IS NOT FINANCIAL ADVICE, JUST VOICING MY OPINION*
BlackBerry was once known as one of the most prominent smartphone brands in the world until
AAPL
changed the world of smartphones/tablets by introducing the iOS platform. It didn't take too long until the number of BlackBerry users fell from a high of 79 million users in 2013 to 11 million users by 2017. BlackBerry now provides security software & services for big companies and has certainly made some notable acquisitions since this reinvention. Though this change could potentially net BlackBerry some impressive gains in the future, we still have to address BlackBerry's situation as of now. And also just assuming that BlackBerry will thrive with this new path they're taking is purely just making loose guesses and no analysis.
Though it has been quite a ride this year for BlackBerry as far as price action goes. I believe we're becoming blind to the fundamentals behind this company. All that chose to ignore these early signs of a massive downfall and continuously chase quick profits with meme traders will lose all their money and very fast.
On January 27, 2021, we saw BlackBerry reach an intraday high of 28.74, which was solely caused by Reddit traders pushing the stock's valuation to a multi-year high. It's also important to note that prior to this surge in price, Analyst Paul Treiber had stated that recent filings showed four BlackBerry insiders sold a total of 170,000 shares since December at an avg. share-price of $12/share.
BlackBerry's Chief Financial Officer, Steve Rai sold roughly 33,000 shares ($428,731 trade value), his entire position in the company on January 21. Chief Marketing Officer, Mark Wilson, sold 78,500 shares ($991,455 trade value) & Billy Ho who leads a division within BlackBerry also sold $259,000 of shares for a combined worth of $1.7 million worth of BlackBerry stock sold by executives within the company.
Of course, it's never clear as to why executives/insiders close their positions, it does lead me to question the future potential of this company if executives are getting out. It also does not speak too highly at all of their confidence in the company.
On June 3, 2021, after falling as low as 73% from January's high, we see BlackBerry jump to 20.17, again, this was fueled by Reddit traders pushing the stock's valuation. No changes to the business. No fundamental reasons.
Though none of us can predict a security's future movements, I do not see BlackBerry turning out to be an upside play no time soon. Just as I mentioned before in my previous idea.
BlackBerry is extremely overpriced at its current levels, and the correction shall continue.
PT: 8.26
