It’s taken 20 years, but Canada’s BlackBerry (BB) is officially out of the smartphone game.
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The Canadian technology firm, which dominated the smartphone market in the early 2000s, has been engaged in a turnaround plan since Apple (AAPL) launched its iPhone in 2007. Now, after two decades, management at BlackBerry has declared that the transition into new markets is complete.
The company has struggled for years to abandon its legacy smartphone business and shift its focus to making software for connected devices and self-driving vehicles. Along the way, BB stock has been decimated. In the last five years alone, the company’s share price has fallen 58%. BlackBerry is now a penny stock, defined as any security that trades for less than $5. It’s also been treated as a meme stock.
BlackBerry’s Balance Sheet
BlackBerry executives declared victory in their long gestating turnaround as the company reported its latest financial results. The tech concern posted earnings per share (EPS) of $0.06, which was slightly ahead of the $0.05 forecast on Wall Street.
Revenue in the latest quarter totaled $156 million, above analyst estimates of $144 million. Looking ahead, management said they expect fiscal first-quarter revenue of $132 million to $140 million, which is above analysts’ estimates of $129.9 million.
Is BB Stock a Buy?
BlackBerry stock has a consensus Moderate Buy rating among three analysts. That rating is based on one Buy and two Hold recommendations issued in the last three months. The average BB price target of $4.97 implies 28% upside from current levels. These ratings could change after the company’s financial results.
