Business & Investment

Why BlackBerry (TSX: BB) stocks soared 40%

BlackBerry (TSX: BB)(NYSE: BB) Stock prices soared 40% on Monday morning. This is the biggest rise in tech stock prices in almost a decade. Let’s see what propelled this rally and what makes it even better.

BlackBerry stock has tripled since the beginning of the year

When the Toronto Stock Exchange opened on Monday, BlackBerry shares were trading at nearly $ 25 per share. This has risen by more than $ 7 or more than 40% from Friday’s levels. The company’s market capitalization currently exceeds $ 13 billion.

BlackBerry inventories have risen for several days before soaring on Monday. At the beginning of 2021, the company was worth just over $ 8 per share. Now it’s about three times as valuable.

This rally doesn’t seem to be explained by the fundamental changes in the business. BlackBerry has had a lot of good news in the last few weeks, but nothing explains the rise in stock prices on Monday. This move is probably driven by investor enthusiasm. According to experts..

On October 16th, BlackBerry announced a partnership with zoom.. Zoom uses BlackBerry’s BlackBerry Dynamics cybersecurity software on its mobile platform to protect your business from cyberattacks and data breaches. BlackBerry Dynamics software also provides secure video conferencing. BlackBerry believes this will become more and more necessary as businesses move away from face-to-face meetings.

BlackBerry signed a deal last month Amazon Work on connected cloud software for cars.Earlier this month, it was reported that BlackBerry sold 90 patents to a Chinese telecommunications company. Huawei.. BlackBerry holds more patents than any other company in Canada, many of which apply to smartphones that BlackBerry isn’t looking at anymore.

While BlackBerry is moving away from smartphones, BlackBerry announced in August last year that it would partner with Onward Mobility to help tech startups build BlackBerry-branded smartphones with 5G technology. The phone will be released earlier this year.

In mid-January, tech companies settled patent disputes in their favor. Facebook..

Enthusiasm for tech stocks is back

While these news may have helped boost BlackBerry’s share price to some extent, it was the enthusiasm of individual investors at popular online discussion forums such as Reddit that helped boost the share price even further. Other stocks have risen unexpectedly in recent weeks.

The current recovery in the stock market is boosting the valuations of large corporations. Investors are now looking for bargains.

There are changes in market sentiment regarding BlackBerry stock. Investors Tech stocks Outlook. Investors seem to be beginning to recognize the value of what BlackBerry has been working on for the past decade as concrete partnerships come to fruition.

The growth outlook for the company looks promising. However, it is advisable to wait for a more attractive entry point as the stock price is overvalued after a strong backlash. The forward P / E is close to 200, which is too high for a growing stock like BlackBerry. If you own BlackBerry shares, you may want to take some profit from the table before the rally fades out.

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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.Stupid contributor Stephanie Bedard-Chateauneuf There are no positions in any of the listed stocks. David Gardner I own shares in Amazon and Facebook. Tom Gardner It owns shares in Facebook and Zoom Video Communications. Motley Fool owns and recommends shares in Amazon, Facebook and Zoom Video Communications. Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: A long call of $ 1920 in January 2022 on Amazon and a short call of $ 1940 in January 2022 on Amazon.

Why BlackBerry (TSX: BB) stocks soared 40% Why BlackBerry (TSX: BB) stocks soared 40%

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