Here’s Why BlackBerry (NYSE:BB) Stock Slipped Post Q2 Numbers
Stock Analysis & Ideas

Here’s Why BlackBerry (NYSE:BB) Stock Slipped Post Q2 Numbers

Story Highlights

BlackBerry’s bottom line came in ahead of analysts’ estimates. However, the slowdown in the Cybersecurity business and macroeconomic weakness weighed on BlackBerry stock.   

Software company BlackBerry (NYSE:BB)(TSE:BB) announced Q2 financials wherein its bottom line came in ahead of analysts’ consensus. However, the slowdown in its cybersecurity business, supply constraints in North America and Europe, and overall macro weakness weighed on BlackBerry stock.

BlackBerry’s CEO, John Chen, stated, “In North America and Europe, however, there appears to be a short-term contraction with certain chip supplies, constraining the ability of OEM to build inventory and meet demand.” 

Chen added that the high interest rates and economic uncertainty “creates the possibility of future choppiness.”

BlackBerry delivered total revenue of $168 million, which compared unfavorably with the $175 million reported in the prior year. An 8% decline in its Cybersecurity business dragged overall revenues down. 

Nevertheless, BlackBerry delivered an adjusted loss of $0.05 a share compared to a loss of $0.06 in the previous year. Moreover, it came better than analysts’ loss estimate of $0.07 per share. Following the announcement, BlackBerry stock is trading about 4.7% lower during the pre-market session on Wednesday. 

Is BlackBerry a Buy, Sell, or Hold? 

On TipRanks, BlackBerry stock has received two unanimous hold recommendations. Meanwhile, analysts’ average price target of $6.75 implies 32.6% upside potential. 

However, with negative indicators from hedge funds, insiders, and retail investors, BlackBerry stock has an Underperform Smart Score of two out of 10. It’s worth mentioning that hedge funds sold 1.2M BB stock last quarter. Meanwhile, insiders sold BlackBerry stock worth $341.9K. Further, 1.1% of investors reduced their exposure to BlackBerry stock.

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