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!
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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.