The BlackBerry Rally Fizzes. Other actions even slip.
The winning streak for
the stock seems to be running out of steam.
After climbing 85% in six weeks, shares of BlackBerry (ticker: BB) are succumbing to the decline in so-called memes popular with investors on the Wall Street Bets channel on the social media platform Reddit.
On Friday, the stock was down 12% to $ 14.03 and traded at $ 13.76. The volume of trade has also declined. With less than 90 minutes left in the trading day, volume stood at 150 million shares, down from the record daily turnover of 534.6 million shares on Thursday. During the week, the stock traded 1.1 billion shares, roughly double the 566 million BlackBerry shares outstanding.
This is the second time in 2021 that investors are aggressively bidding on BlackBerry shares. In the first four weeks of January, the stock nearly quadrupled, hitting a 10-year high at nearly $ 29 before falling back to single digits in recent weeks.
Once a very successful mobile phone company, BlackBerry has moved on, in addition to licensing its patent portfolio. BlackBerry is now primarily a software company. Its QNX real-time operating system software is used in automobiles, medical devices and other products. And it offers endpoint protection security software.
But the standoff in the stock doesn’t seem to have much to do with the fundamentals of the company.
Other memes stocks also showed modest losses. For example, both
(GME) and AMC (AMC) were down about 3%, Bed Bath & Beyond (BBY) was down 2%, and Express (EXPR) was down 5%.
Write to Eric J. Savitz at [email protected]