Cryptocurrency continues to dominate financial headlines these days. After a seemingly unstoppable climb, cryptocurrency stocks seemed to fall off a cliff due to a number of reasons. But the largest reason of all? Cryptocurrency like Dogecoin remain risky. But with share prices remaining so low, does that mean BlackBerry stock (TSX:BB)(NYSE:BB) is any better?
Today I’m going to dig into both of these companies and currencies and see where you should put your money.
On the one hand, cryptocurrency doesn’t look to be going any where. That’s what makes Dogecoin so compelling. This cryptocurrency remains incredibly cheap when compared to something like Bitcoin in the tens of thousands. Today, you can pick up Dogecoin for a mere $0.60!
And the growth has been incredible. Starting out last year at just $0.0036, that’s a climb of 16,567% in the last year alone! But while that number looks incredibly attractive, we’re now seeing far slower growth. In fact, in the last month shares have grown 75%. Still great, but that’s amidst a lot of turmoil.
Dogecoin remains similar to a penny stock, in my opinion. Like the rest of cryptocurrency, it’s a volatile industry where some will stay, and others will fall to the wayside. Until Dogecoin either merges with another company, or climbs to more stable heights, it’s a risky investment within the cryptocurrency world. After all, anything that would crash into oblivion from some billionaire’s tweets isn’t exactly a safe and stable investment.
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But is BlackBerry stock much better? The company completely shifted gears in the last decade, moving away from smartphones toward hardware. The company has taken on massive clients as it supports this growth in cybersecurity. This includes with autonomous vehicles, where the company recently partnered with Amazon Web Services to bolster its cloud-based IVY platform.
While this sounds like a promising future, right now there are plenty of hurdles for BlackBerry stock. It continues to lose revenue quarter after quarter, with its net income margin down 123% year over year. While other tech stocks were strong in the pandemic, BlackBerry stock didn’t seem to get the same bolster in share price.
Well, it did, but not for long. The company climbed to $36 per share in the wake of the United States election and support of Electric Vehicles, Amazon partnership, and settling a patent dispute. However, this created a huge sell off in the stock. Today, shares in BlackBerry stock are up 63% for the year, but down 68% since those 52-week highs. While its book value looks cheap at three, its price-to-earnings ratio for the next 12 months looks less so at 64 as of writing.
Honestly, the cryptocurrency sector is a risky area to invest in right now. While everyone wants to be the person who bought astronomically low, I believe that time has passed. Now it might be better to wait and see which company stabilizes the best and invest there instead. This is the approach I would take with Dogecoin.
As for BlackBerry stock, there needs to be some stabilization there as well. The company has made a lot of announcements, but there hasn’t been all that much to show for it. Shares remains about where they were years ago, with hardly any movement. While this could be a good company to invest in for long-term returns, with somewhat less volatility than Dogecoin, it could go the other way as well.
In short, until some stability comes along, I would add just a small stake to either of these companies, depending on the future you remain more confident in.
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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.