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BlackBerry’s Painful Drop

Shares of BlackBerry plummeted last Friday after the smartphone maker announced that it lost $84 million last quarter, and forecast another operating loss for the current quarter. The stock dropped almost 30%.

BlackBerry fell out of favor and was considered dead a long time ago. But last November the company announced that its new operating system would launch in January, and shares took off for a time on hopes that the company would turnaround on the back of the BlackBerry 10.

But this past quarter the company shipped 6.8 million smartphones…and just 2.7 million of them were the new BlackBerry 10. Not exactly a home run.

And the company reported that its global users fell by 4 million to 72 million…it also announced that it will not be reporting that number in the future.

The enthusiasm behind the stock last year (which resulted in a buy signal) flattened out in the spring. To be fair, the stock was oversold in last week’s race to the door, but that doesn’t make it a buy.

Rezny Wealth Management may hold investments in above-mentioned securities; positions can change at any time.

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