Blackberry’s Stock Takes a Body Blow

Blackberry shareholders should strap themselves in for a wild week!

| More on:
The Motley Fool

Blackberry (TSX:BB,NASDAQ:BBRY) will be providing the first glimpse at actual sales figures for the new BB10 device this Thursday (March 28th) when the company announces quarterly financial results.

However, one market that won’t figure into this week’s release is the U.S., which just so happens to be BB’s most important market.  The new Blackberry was just released in the U.S. last week and this morning Goldman Sachs downgraded the stock to “neutral” based on a seemingly tepid reception at 20 retail locations, including AT&T and Best Buy outlets that the firm checked.

This news sent the stock reeling, down by more than 7%, in early Monday trading.  Goldman’s target  moved from $19 (US) to $17 (US) and they are now assigning a 20% probability of success for the BB10 product, down from 30%.  Oooof!

The Foolish Bottom Line

If you’re in the mood for a bit of gambling, few names offer a better outlet than Blackberry, especially this week.  Not only is the company reporting eagerly expected results, the new BB10 is launching at Verizon as well.  To be clear, gambling is not a Foolish investment strategy.

Because of the outstanding short position against BB shares, the stock can be expected to rip higher if results are decent.  Today’s Goldman downgrade has only added fuel to this fire.  Expect more sell-side preliminary reports in the first half of the week, like Goldman’s, as analysts position themselves for Thursday’s moment of truth.  Blackberry shareholders are in for a wild one!

We have created a special report that outlines 5 Canadian stocks that don’t have wild weeks.  Relative to Blackberry, these companies are downright dull.  All they do is offer shareholders a way to significantly increase their wealth over the long term with very little risk.  Simply click here and this report will be delivered to you, absolutely free!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own shares in any of the companies mentioned in this report at this time.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Index funds
Investing

Got $500 to Invest in Stocks? Put it in This Index Fund

Here's why I like this index fund.

Read more »

A colourful firework display
Tech Stocks

3 TFSA Stock Picks With Explosive Potential

Want some explosive growth in your TFSA. These small-cap stocks have risks, but they could also have some massive reward.

Read more »

Dollar symbol and Canadian flag on keyboard
Investing

1 Canadian Stock to Buy and Hold Forever in Your TFSA

Shopify (TSX:SHOP) stock is back on the retreat, but it's still a top tech buy for TFSA investors seeking value…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, July 25

The U.S. GDP quarterly growth numbers will remain on TSX investors’ radar today as they continue to assess the Bank…

Read more »

Family relationship with bond and care
Retirement

Retiring Soon? Add These Dividend-Paying Stocks to Your Portfolio

Here are two of the best TSX dividend stocks you can add to your retirement portfolio today and hold for…

Read more »

man touches brain to show a good idea
Dividend Stocks

Pembina Vs. Brookfield Renewable: Which High-Yield Dividend Stock Is Better?

Both Pembina Pipeline (TSX:PPL) and Brookfield Renewable Partners (TSX:BEP.UN) look like strong dividend stocks, but is one better?

Read more »

Road signs rerouting traffic
Tech Stocks

Forget Nvidia Stock: 2 Tech Stocks to Buy Instead

There are clear winners, and then there are popular choices. And Nvidia stock (NASDAQ:NVDA) has erred towards simply popular.

Read more »

Technology
Stock Market

Here Are My Top 2 Stocks to Buy in July 2024

Here's why top TSX stocks such as Cameco are positioned to deliver outsized gains to shareholders in the upcoming decade.

Read more »