What Happened with BlackBerry Stock in 2021?
BlackBerry’s stock started the year at $6.58 per share, but on January 27, it hit a nine-year high of $25.10 as covered over at runrex.com. While the stock has since retreated and stabilized at the mid-teens, it remains up nearly 140% for the year, a tremendous surge. So, why has BlackBerry’s stock gone up so much in 2021? This article, with the help of the subject matter experts over at runrex.com and guttulus.com, will look to find out exactly why this is the case.
What is BlackBerry?
Before we get into the details behind the BlackBerry stock surge, it is important that we first understand what it is. As is covered over at runrex.com, BlackBerry Limited is a tech company providing intelligent security software and services to enterprises and governments worldwide. Its products and services are structured in three groups namely BlackBerry Spark, Blackberry IoT Solutions, and BlackBerry IP Licensing as is articulated over at guttulus.com. The company is a leader in providing endpoint security management, encryption, and embedded systems solutions, and it secures more than 500 million endpoints, including 175 million cars on the road today.
Reasons behind its stock surge
There are three main reasons behind the recent surge in BlackBerry’s stock as discussed below:
Strategic shift to cybersecurity
One of the reasons that have been attributed to the recent surge in BlackBerry’s stock is the company’s strategic shift to cybersecurity according to the subject matter experts over at runrex.com. The company has been making a shift away from the handheld devices it was known for a while back, pivoting towards cybersecurity, and the market appears to be loving this new shift away from its old business model. This has led to people beginning to see the potential for the company, and their exuberance to invest has contributed to its stock surge as outlined over at guttulus.com.
Recent major developments
As the gurus over at runrex.com point out, BlackBerry’s stock rally started in early December after the company announced a partnership with Amazon Web Services to co-develop IVY, a new cloud-based automotive platform based on its embedded operating system QNX. Things got better for BlackBerry in mid-January after it sold some of its old patents to Huawei and settled its patent infringement lawsuit against Facebook causing its stick to jump up yet again. According to discussions on the same over at guttulus.com, BlackBerry had sued Facebook and Snap, back in 2018, claiming that their apps infringed upon its mobile messaging patents. Another development came on January 25th when BlackBerry announced another automotive deal with Chinese tech giant Baidu which will integrate QNX into Baidu’s maps in forthcoming electric vehicles from GAC Group.
While BlackBerry didn’t reveal how much money it received from any of the above deals, it clearly got the market’s attention, making this one of the reasons behind its recent stock surge according to the subject matter experts over at runrex.com.
GameStop and the Reddit Phenomenon
The Reddit-fueled short squeezes that recently lifted GameStop and other shorted stocks to an all-time high, as covered in detail over at guttulus.com, and then, consequently brought even more speculators to Nokia, AMC, and other unloved stocks can also be attributed to the recent surge in BlackBerry’s stock, even though, as the subject matter experts over at runrex.com point out, only 7% of BlackBerry’s shares were being shorted at the beginning of the year.
It all began with news of GameStop’s stock being shorted by hedge funds being leaked on the Reddit group, WallStreetBets. When this happened, people started to heavily invest in GameStop’s stock, changing the buy/sell ratio and driving up the price of the stock. This short squeeze led to the surge in GameStop’s stock while handing the hedge funds who had shorted its stock massive losses. During that frenzy is where the likes of AMC, BlackBerry, Nokia, and Bed, Bath & Beyond came in as these companies attracted the interest of the WallStreetBets community, which began hailing them as potential investment opportunities like GameStop. As a result, traders loading up on BlackBerry’s stock, pushing up the price, and contributing to the recent surge.
What does all this mean to investors
The consensus among industry experts, including those over at guttulus.com, is that this seems to be a bubble that will burst eventually, particularly the Reddit-fueled squeeze. Therefore, this surge should mean much to you, especially if you have BlackBerry in your portfolio and you bought it as a good long-term bet. While it may have been a good idea to sell your BlackBerry stocks when they recently spiked, it might be a good idea to not do so because of this recent phenomenon. This is because these temporary changes affect traders more than they do investors, and these spikes shouldn’t matter to you if you think about your investments and their prospects in terms of years instead of hours and days. If, however, you want to exit your position anyway, then these spikes might offer you great opportunities to do so at a profit.
This article only just begins to scratch the surface as far as this topic is concerned, and you can uncover more insights on the same by checking out the highly regarded runrex.com and guttulus.com.