Home »Investing» Technical Stocks »Why BlackBerry (TSX: BB) stocks lost 23% in February

Jitendra Parashar | 22nd February 2021 | More on: BB BB

Shares in Canadian software company BlackBerry (TSX: BB) (NYSE: BB) were down over 16% last week, compared to the broader market trading as the S&P / TSX Composite Index ended the week in a small 04 % Loss It was the third week in a row that BlackBerry shares traded negatively. For those three weeks combined, it has lost around 234%. Despite this, the stock is still trading more than than in January due to its solid gains of 113% 60% since the beginning of the year

Let’s take a closer look at some of the key factors behind BB stock’s recent losses, and whether it’s still worth buying

BlackBerry became one of the hottest topics on Bay Street in January when its name appeared on the infamous Reddit community WallStreetBets, members of that community mostly targeting heavily shortened stocks like GameStop and BlackBerry, sparking a rally in stocks like that off by pushing the short positions in an obvious battle against large institutional traders and hedge funds

The Reddit group was partly responsible for an insane rally in BlackBerry stock price as it also massively increased volatility over the past month, however, the stock gains weren’t entirely unfounded – I believe, for example, here are some positive developments recently, which may create the conditions for a big rally

The company announced several positive updates in January that were enough to build investor confidence. BlackBerry has settled its year-long patent infringement litigation with American tech giant Facebook

Last month, BB expanded its automotive partnership with Chinese tech giant Baidu, BlackBerry’s QNX Neutrino Real-Time Operating System (OS) uses Baidu’s high-resolution maps, such high-resolution maps are vital for autonomous and connected vehicles, as the Chinese automaker GAC Group becomes use BlackBerry’s QNX Neutrino OS in its upcoming Aion-branded series electric vehicles (EVs) The development will help BlackBerry expand its presence in the world’s largest and fastest growing auto market

Previously, in December, BlackBerry worked with Amazon Web Services to develop an integrated vehicle data platform.This data platform will improve the functionality of autonomous cars by enabling automakers to access and use vehicle sensor data in real time. BlackBerry plans to add more EV to its data platform soon -add specific functions

These developments might look normal at first, but could play an important role in defining future trends in BlackBerry financial data. As the demand for electric vehicles and autonomous cars continues to grow, BlackBerry could become a big player in the industry / p>

The American automaker Ford recently announced that it would use Google Android instead of BlackBerry’s QNX platform in its cars. Ford has been one of many major automakers to use QNX OS in their cars for years with plans to use Android in their vehicles in the future Last week, the analyst at Canaccord Genuity also downgraded its ratings on its stock, the analyst believes its stock surpassed expectations over the past month due to the Reddit short squeeze episode, which explain two factors the 16 last week, BlackBerry stock fell 5%

In one of my recent articles, I explain why long-term investors should ignore short-term market noise – as the world’s largest investor, Warren Buffett, BlackBerry’s increased efforts to capitalize on the upcoming revolution in electric vehicles and autonomous cars could help that finances will grow exponentially in the years to come.This is why I consider a recent price decline to be an opportunity for long-term investors to buy it cheaply

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, serves on the Board of Directors of The Motley Fool. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of its CEO Mark Zuckerberg, is a member of the Board of Directors Directors of The Motley Fool David Gardner owns shares in Amazon, Baidu, Facebook and GameStop Tom Gardner owns shares in Baidu and Facebook The Motley Fool owns and recommends shares in Amazon, Baidu and Facebook The Motley Fool recommends BlackBerry and BlackBerry and recommends the following Options: long calls in January 2022 for $ 1,920 to Amazon and short calls in January 2022 for $ 1,940 to Amazon Fool payer Jitendra Parashar has no position in any of the stocks mentioned

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Source: https://www.fool.ca/2021/02/22/why-blackberry-tsxbb-stock-has-lost-23-in-february/