Sunday, June 1, 2025

Latest

RBC Downgrades Blackberry Stock Following Reddit-Inspired Frenzy

Following what has been a historic speculative frenzy driven by retail investors posting on a popular subreddit forum called WallStreetBets, the nearly-obsolete retailer GameStop has seen its value soar by as much as 400% since the beginning of the year. As of Tuesday, the rally appears to have continued, as day traders wage war on institutional short-sellers, taking with them several other once-fruitful names, including Blackberry and Nokia.

Blackberry has also been the subject of a surging price rally following the retail investor collaboration on Reddit, as the company’s stock soared to over $20 Tuesday morning. Despite what appears to be dedicated perseverance among the WallStreetBets community, which has even backed major short-seller Andrew Left into a corner, it appears that RBC Capital Markets continues to hold a pessimistic view on the recent fiasco.

In a note to clients, RBC analyst Paul Treiber downgraded shares of Blackberry, with the expectation that the company will continue to underperform despite the astronomical price rally that has dominated headlines as of recent. “Based on our view that a material patent sale or licensing settlement agreement has not occurred of the magnitude of the ~$7 billion value creation in the stock, we believe the fundamental justification for the rally in the stock to [more than] $18 per share would only stem from an improved outlook for either BlackBerry’s QNX/BTS automotive business or recurring IP licensing revenue,” he explained.

Treiber retained his 12-month price target of US$7.50 on Blackberry’s shares listed on the NYSE, suggesting a 58% decline in the share price is on the horizon. Neither of the nine major analysts that cover the company has issued “buy” ratings, meanwhile six have rated Blackberry as a “hold”, and three have given it a rating of “sell,” reveals Bloomberg.


Information for this briefing was found via Bloomberg and Reddit. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Aya Gold & Silver Q1 Earnings: From Kitchen Sink to Record Results

Wesdome Gold Q1 Earnings: Cash Flow Is King!

Solaris Resources: The Royal Gold Financing Package

Recommended

Brazil Potash Completes Site Prep For Port Terminal

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Related News

AMC Theatres: SHOWTIME!!

AMC Entertainment (NYSE: AMC) announced this past Wednesday that 98% of its US locations would...

Saturday, March 20, 2021, 09:00:00 AM

Gamestop: Squeeze Play On GME or Hedge Fund Kayfabe?

The Alice Cooper Chicken Incident In 1971, Alice Cooper was a touring musician with a...

Thursday, January 28, 2021, 10:03:35 AM

Court Dismisses r/wallstreetbets Creator’s Lawsuit Against Reddit

The United States Northern District of California has dismissed the lawsuit brought by Jaime Rogozinski,...

Saturday, January 13, 2024, 12:01:00 PM

GameStop Short-Sellers Lose Another $2 Billion Amid Retail Trading Resurgence

It appears that the Reddit army’s beloved meme stock, GameStop, is the subject of yet...

Friday, February 26, 2021, 02:45:00 PM

WallStreetBets Founder Sues Reddit for Ousting Him As Moderator

Jaime Rogozinski, the founder of the WallStreetBets, the popular subreddit forum that influenced the rise...

Wednesday, February 15, 2023, 08:19:59 PM