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

Jitendra Parashar | February 22, 2021 | Find out more: BB BB

Shares of Canadian software company BlackBerry (TSX: BB) (NYSE: BB) fell more than 16% last week In comparison, the market as a whole traded on a mixed note, l ‘S&P / TSX Composite Index Having Ended The Week With A Minor 0 4% Loss This was the third week in a row for BlackBerry stocks traded on a negative note In those three weeks combined it lost around 234% Nonetheless, the stock is still trading around over 60% gains year-to-date due to its strong 113% gains in January

Let’s take a closer look at some key factors behind BB’s recent losses and whether it’s still worth a buy

BlackBerry became one of Bay Street’s hottest topics in January when its name appeared on the infamous Reddit community WallStreetBets Members of this community were primarily targeting heavily shorted stocks like GameStop and BlackBerry They sparked a rally on these stocks by tightening shorts in an apparent fight against large institutional traders and hedge funds

The Reddit group was partly responsible for an insane rally in the BlackBerry stock price, as it also dramatically increased volatility last month However, its stock gains weren’t completely unfounded – I believe For example, here are some recent positive developments that could set the stage for a big rally

The company announced several positive updates in January that were enough to boost investor confidence BlackBerry has settled its patent infringement disputes with US tech giant Facebook

Last month, BB expanded its automotive partnership with Chinese tech giant Baidu BlackBerry’s QNX Neutrino real-time operating system (OS) will use Baidu’s high-definition cards These high-definition cards are from Critical Importance for Autonomous and Connected Vehicles Chinese automaker GAC Group to use BlackBerry’s QNX Neutrino operating system in its upcoming mass-produced Aion-branded electric vehicles (EVs) This development will help BlackBerry expand its market presence the world’s largest and fastest growing automobile

Previously, in December, BlackBerry partnered with Amazon Web Services to develop an integrated vehicle data platform This data platform will improve the functionality of self-driving cars by allowing automakers to access and ‘use real-time vehicle sensor data BlackBerry plans to add more EV-specific features to its data platform soon

These developments may seem normal at first, however, they could play an important role in shaping future trends in BlackBerry’s finances As demand for electric vehicles and self-driving cars continues to soar, BlackBerry could become a player industry major

U.S. automaker Ford recently announced plans to start using Google Android in its cars instead of BlackBerry’s QNX platform Ford has been one of several major automakers to use QNX OS in its cars since years Its intention to start using Android in its vehicles in the future is likely to hurt BlackBerry’s financial position in the short term Canaccord Genuity analyst last week also cut ratings on its stock The analyst believes its stock exceeded expectations last month due to Reddit’s short-squeeze episode These two factors explain the 16 5% of BlackBerry stock

In one of my recent posts, I explain why long-term investors should ignore short-term market noise, as the world’s largest investor, Warren Buffett, does BlackBerry’s increased efforts to pull part of the next electric vehicle and self-driving revolution could help it grow its finances exponentially in the years to come.This is why I consider a recent drop in its share price to be an opportunity for investors long term to buy it at a low price

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John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a board member 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 of The Motley Fool David Gardner owns shares of Amazon, Baidu, Facebook and GameStop Tom Gardner owns shares of Baidu and Facebook The Motley Fool owns shares and recommends Amazon, Baidu and Facebook The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: calls long January 2022 at $ 1920 on Amazon and short calls from January 2022 at $ 1940 on Amazon Silly contributor 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/