BlackBerry Stock: Profits Are Due Amid Stock Volatility Meme


A May quarter earnings report for BlackBerry stocks comes late Thursday, with management due to provide an update on the pending sell off of its IP portfolio. BlackBerry’s earnings report comes amid continued volatility for BB stocks and other social media-focused meme stocks, such as AMC Entertainment (AMC).




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Analysts expect Blackberry (BB) first quarter revenue down 20% to $ 171.3 million, mainly due to lower pre-sale intellectual property licensing revenue on hold. BlackBerry earnings are expected to decline to a 5-cent loss from the 2-cent profit a year earlier.

Blackberry shares gained some 95% in 2021, although stocks fell slightly from a rally in early June. Investors using social media sent BB shares as well as other meme shares, including the AMC movie channel, GameStop (GME) and Health Clover (CLOV).

“We believe the rally (BlackBerry) reflects trading dynamics, as opposed to significantly improved fundamentals,” said Paul Treiber, analyst at RBC Capital, in a note to clients. “We expect BlackBerry’s core software business to remain weak.”

BlackBerry Stock: update on the sale of intellectual property?

Treiber said Blackberry management could provide an update on the sale of IP assets.

“As a result of the sale of the pending patent, we expect licensing and other revenue to drop 71% to $ 15 million, in line with BlackBerry forecasts,” Treiber added.

“The sale of BlackBerry’s patent portfolio will help fund new software investments,” he continued. “However, we estimate that BlackBerry’s patents are worth $ 1 billion in a sell-off scenario, which we believe is already built into the stock.”

BB Stock: pivot to enterprise software

BlackBerry stock fell 1.5% to 12.94 in morning stock exchange trading today. Here’s a detailed look at BB stock, using IBD’s technical and fundamental analysis, ahead of the BlackBerry earnings report.

A former leading manufacturer of mobile devices, BlackBerry has been a driving force in pagers and cell phones. But its hardware business collapsed in 2008 in the face of competition Apple (AAPL) iPhones and Android devices.

BlackBerry switched to mobile security software under the leadership of John Chen. In addition, BlackBerry is a supplier of software to the automotive market for entertainment and mapping programs.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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