The company, once famous for its mobile devices (remember BBM?), is now making rounds again in the investment world. Meme stock investors flocked to Blackberry (NYSE: BB) because of its high levels of short interest. The stock is currently one of the most mentioned on Reddit’s WallStreetBets community and is up 127% in the last 12 months.
However, now the stock is receiving more attention after its impressive second-quarter results.
Blackberry stock jumps after earnings
Blackberry stock jumped 6% in after-hours trading yesterday after it smashed quarterly sales expectations. The firm posted a loss in earnings per share of $0.06, which still beat Wall Street’s estimates of a loss of $0.07, on total revenue of $175 million.
The Canada-based firm reported a net loss of $144 million, up from the $23 million it recorded in the year-ago quarter.
Is Blackberry stock a buy?
BlackBerry stock is on the rise because of the company’s potential too. It is currently benefiting from a rapid increase in demand for cybersecurity and the internet of things products. This trend has been accelerated by the switch of businesses moving over to cloud-based solutions supporting remote and hybrid working models. In 2020, the company also announced a multi-year partnership with Amazon, which is one of the biggest cloud infrastructure platforms in the world. The news initially drove bullish sentiment over the stock and it looks like the company is in a good place.
In other positive news, the firm has also appointed former McAfee executive, John Giamatteo, as Blackberry’s President of cybersecurity business. This new role proved Blackberry’s drive to really push this lucrative side of the business.
The company still has a long road ahead to be classified as a safe long-term investment as it was not long ago that this company was in trouble after Apple and Google obliterated it from the smartphone industry. Blackberry also has big competition from ServiceNow (NYSE: NOW) too. It might take some time, and plenty more solid earnings releases from Blackberry, for it to be classed as a safe investment.
BlackBerry stock not the right pick for you? Well, you are in luck because MyWallSt has got a shortlist of market-beating investment opportunities so you can start generating long-term wealth. Start your free access now.
Financial Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.