BlackBerry Stock Slides Further as Several Analysts Downgrade it’s Value

By: Jeff Stewart  |   July 8th, 2013   |   Business, News, O Canada, Smartphones

Before BlackBerry released its earnings for the second quarter of 2013, several analysts were hoping that it will post a positive result, as they expected the company to declare a profit of 4 cents on each share. However, when BlackBerry unveiled its second quarter earnings, the Waterloo-based declared a loss of 13 cents on each share instead of showing some profit. As a result of that, BlackBerry stock plunged down by 27 percent during the following trading hours, as the earning call of the company created panic among investors. Now according to the latest update, this disappointing trend continues on the next day of trading session as well, as the shares of the Canadian smartphone maker slides down further with numerous analysts downgrading the value of the stock after poor result.

 

So it is feared now that the way BlackBerry share are sliding down it might touch single digits once again in the coming days. If this happens then, it will be the first time after 2012 that the stock will enter into the single digit territory. Research firms which have downgraded the value of BlackBerry’s stock during this week are Deutsche Bank, Needham, Credit Suisse, Citi, Morgan Stanley and Jefferies.

 

Quoting an analyst from Morgan Stanley, the Wall Street Journal has reported that, “We fear enterprise and consumer opinion of BB10 could have been materially harmed by Friday’s earnings, which if left unaddressed, could negatively influence the actual performance of the business.”

 

An analyst from Credit Suisse has written in a note that, “Despite the significant post-earnings reaction, we continue to see further downside.”

 

On the other hand, targeting the new BlackBerry 10 devices a Needham analyst mentioned in his report that neither the latest Q10 and nor the Z10 have the “wow factor”, which affirms that “BlackBerrys are no match for iPhones and Androids.”

Some of the analysts are now of the view that BlackBerry’s stock is likely to go down as low as $6, which is an all-time low. Back in 2008, BlackBerry shares used to trade over $140.

 

Here is what BlackBerry CEO, Thorsten Heins has said on Friday, June 28th when the company showed revenue of $3.1 billion and a loss of $84 million.

 

Heins said, “During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform. We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions.”

 

He also said that, “Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers.”

 

Source: TechVibes