Why BlackBerry Stock Is Down By 11% Today

Key Insights

• BlackBerry stock is under pressure as traders are focused on the declining licensing revenue. 
• Analyst earnings estimates have just moved into the negative territory. 
• The stock will need material positive catalysts to change the current downside trend.

BlackBerry Stock Falls After Disappointing Quarterly Report

Shares of BlackBerry  gained strong downside momentum after the company released its quarterly report. BlackBerry reported total revenue of $185 million and adjusted earnings of $0.01 per share, missing analyst estimates on revenue and beating them on earnings.

The company’s total revenue included cybersecurity revenue of $122 million, IoT revenue of $52 million and licensing revenue of $11 million. The company noted that licensing revenue would be minimal in the new fiscal year, and this statement has clearly put pressure on BlackBerry stock.

BlackBerry shares enjoyed several positive moments in 2021 due to the meme-stock mania. At one point, the stock tested the $28 level. However, the company’s shares have been in a downside trend since June 2021. This year, the stock has already made an attempt to settle below the $6 level, and another attempt to get below this level looks possible after the disappointing report.

What’s Next For BlackBerry Stock?

Analysts expect that BlackBerry will report a loss of $0.03 per share in the next fiscal year. Analyst estimates have recently slipped into the negative territory, and it looks that this trend could continue in the upcoming weeks.

The market doubts whether the company will be able to grow its earnings, and it’s not surprising to see that BlackBerry stock has remained under pressure for months.

At this point, it is clear that the company will need to come up with significant positive catalysts to break the current downside trend. In absence of such catalysts, BlackBerry stock may move below the recent lows near the $6 level.

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