Business & Investment

BlackBerry stock prices are rising further against the backdrop of rising GME stock prices. Should I Buy This US Stock?

BlackBerry (NYSE: BB)The iconic brand and pioneer of smartphones, has been in a difficult situation for the last few years. In 2008, BlackBerry’s share price was as high as $ 145 per share, but by 2012 it had fallen brilliantly. The market crash in March 2020 was below $ 3.

But in the last two months, it has made a remarkable comeback. At the time of this writing, Blackberry shares are trading at $ 22. So does this mean it’s now a “necessary” tech stock with an exciting future? Don’t go beyond yourself.

Blackberry stock rebound

BlackBerry is now a software security company, not a smartphone maker. Security is becoming an increasingly important part of our world, and there is a clear need for such services. And in the past few weeks, some newsworthy announcements have helped boost BB’s share price.

In December, BlackBerry announced a joint venture with Amazon A web service for developing cloud-based platforms for the automotive industry. Shareholders welcomed the news. Then, earlier this month, Facebook BlackBerry reportedly helped to reconcile and raise sentiment towards sharing.

Shortly thereafter, the company announced that it had sold 90 smartphone patents. Huawei Technologies.. This has brought about an exciting development, as the Blackberry library is reported to have about 38,000 patents.Announcement of partnership with Chinese search engine Baidu In connection with electric vehicles Technology continue.

All of these news items have naturally boosted BB’s share price, but the rally’s range has increased 220% in a month, astonishing both analysts and investors.

Are these shares rising with a short squeeze?

According to a news release on Monday, BlackBerry didn’t know the reason for the recent rise in stock prices.But there is speculation that it continues from the incredible story of GameStop (NYSE: GME) Meteor stock price rise.

The· GME stock price The rise in the last few days has been in the spotlight.More than 2 million amateur investors on Reddit boards reportedly wallstreetbets They bought stock in a sick video game store and united to squeeze out the hedge funds betting on it.

Robinhood Is a popular retail investor app used to buy and sell stocks in the United States, and many of these amateur investors use it. GameStop’s inventory has increased by more than 740% year-to-date, reflecting Robin Hood’s story of stealing from a big bad hedge fund to feed the poor. Some of the investors involved reportedly turned a small amount into a life-changing return. However, social media conspiracy theories are out of control, and stock prices are skyrocketing, raising concerns that the US Securities and Exchange Commission (SEC) will intervene and stop acting.

In the midst of the turmoil, investors turned to additional stock to buy. One of them seems to be BlackBerry. This is because it is another share with a large number of shorts (hedge funds are betting on it). This helps explain why BlackBerry stock prices have risen so much.

As exciting as witnessing, BlackBerry stock is not a viable purchase for me at today’s prices. Price earnings ratio and earnings per share are negative and there are no dividends. The excitement over these stocks is unlikely to continue and may even lead to legal intervention. Hopefully it won’t lead to too many casualties.

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John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors. Randi Zuckerberg, a former Facebook market development director and spokeswoman and sister to CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Kirsteen does not have a position in any of the shares mentioned. Motley Fool UK owns and recommends shares in Amazon, Baidu and Facebook. The Motley Fool UK recommends BlackBerry and recommends the following options: The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by considering different insights, Better investors than us.



BlackBerry stock prices are rising further against the backdrop of rising GME stock prices. Should I Buy This US Stock?

https://www.fool.co.uk/investing/2021/01/27/blackberry-stock-rallying-further-on-back-of-gme-share-price-rise-should-i-buy-this-us-stock/ BlackBerry stock prices are rising further against the backdrop of rising GME stock prices. Should I Buy This US Stock?

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