meme play has returned with a vengeance.
In the primary 4 weeks of January, BlackBerry inventory (ticker: BB) nearly quadrupled, hitting a 10-year excessive, apparently pushed by aggressively bullish retail buyers within the Wall Street Bets group on Reddit—not in contrast to the sharp rallies in shares of the videogame retailer
(GME) and the movie show operator
AMC Entertainment Holdings
BlackBerry hit a multiyear document excessive of $25.10 on Jan. 27—but it surely didn’t keep there for lengthy, falling again to single digits by late March.
But now the meme shares are again: On Tuesday, AMC rallied 23%, to $32.04, GameStop gained 12%, to $249.02, and BlackBerry jumped 15%, to $11.56, its highest degree in additional than two months. On Wednesday, AMC shares nearly doubled, GameStop inventory added one other 13%, and BlackBerry gained one other 32%.
While many individuals should still bear in mind BlackBerry for its once-ubiquitous smartphones, the corporate way back stopped making them. BlackBerry now’s primarily a software program enterprise, with a deal with each cybersecurity and software program for the automotive trade.
The rally partially might mirror buyers attempting to spur a brief squeeze. There had been about 50.2 million BlackBerry shares bought quick as of May 14, about 9% of the corporate’s shares excellent, and equal to shut to 4 days of common buying and selling quantity within the inventory over the previous three months.
For the January 2022 fiscal 12 months, analysts anticipate BlackBerry to publish income of $824 million, down about 10% from the $919 million reported within the earlier 12 months. The Street expects a loss for the 12 months of about 5 cents a share. With at present’s transfer, BlackBerry has a market cap of about $6.5 billion.
Just 4 of the 16 analysts who comply with BlackBerry have a Buy score on the inventory. The common value goal on BlackBerry shares is $7.75, and no analyst has a goal above $10.
BlackBerry didn’t instantly reply to a request for remark.
Write to Eric J. Savitz at email@example.com