BB gets its groove backAfter sending meme stocks like AMC and GameStop soaring, it looks like the Reddit army might be setting its sights on BlackBerry - which is trending across social media platforms and has seen a sudden pop of 45% this week so far.
BlackBerry is back on the short-squeeze radar after a few months in the doldrums, as retail investors get busy pushing the stock on social media. This isn't the first time BlackBerry has seen its name pop up on the Reddit WallStreetBets page – it was one of the firms that first benefited from the meme-stock madness that hit the market back in January. As investors on message boards triggered a short-squeeze on AMC and GameStop at the start of the year, BlackBerry also had relatively high short interest and investors started piling in, sending it on a surge of 112% for the month. Unfortunately, a broader sell-off in meme stocks in February combined with some mixed Q4 earnings sent it back on a steady decline.
Never fear though, because the online fans are here. BlackBerry burst into Tuesday morning as excitement caught on from the massive gains other meme stocks have shown recently, and it became the second-most cited stock on the WallStreetBets page in 24 hours, trailed closely by GameStop. About 10% of messages were users hoping or pushing for a short squeeze, while others were looking for an increased analyst price target.
There was once a time that BlackBerry was known worldwide for its phones (and its ridiculously popular BBM – kind of like an early Whatsapp for you younguns) but in fact the company doesn't even produce those anymore, and is now exclusively a software provider. Its latest earnings led to a decline in price though, and its forecast isn’t looking too sunny either, so this could all just be a flash in the pan.