What Caught Our Attention in the Investment World? – Week of September 23-27, 2019

By Kuldip K. Ambastha and Anil K. Ambastha

BlackBerry Limited (BB) is a prominent Canadian company, previously known as “Research In Motion.” The general public knows BlackBerry Limited best as the developer of the BlackBerry brand of phones and tablets, but in more recent years the company now provides enterprise software and services. From 2001 through 2011 and starting with the BlackBerry Pearl 8100 phone which famously had multimedia capabilities, the company was able to gain rapid market share among enterprises and consumers. Due to slowing growth and fierce competition, the company had to change and restructure from 2011 through 2015 to provide enterprise software and services. On September 24, 2019, the stock had a 22.6% daily decline. This is the sixth largest daily decline in the stock price. The prior five largest daily declines occurred within 2000 – 2013. On September 24, BlackBerry Limited reported its second quarter fiscal 2020 (ending August 31, 2019) financial results. The company’s Generally Accepted Accounting Principles (GAAP)-basis net loss for the year-over-year was higher due to higher operating expenses. For fiscal 2020, BlackBerry Limited cut its revenue forecast, since the company sees weaker demand going forward for software among corporate and government clients due to increasing competition.

Keywords – BlackBerry, BB, Research In Motion, RIM, Canada, technology, smartphone, tablet, enterprise software, revenue forecast, second quarter.

Disclosure – The principals of Ambastha Financial LLC have no position in BB.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2019 – Ambastha Financial LLC.

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