This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

BlackBerry's Grim Prospects: Z10 Launch Disappoints (Update 1)

The BlackBerry 10 operating system, and the Z10 smartphone, are supposed to change the minds of the American consumer. Over the weekend, BlackBerry had several commercials run during the NCAA tournament, as the company hoped to capture back the mindshare it lost over the years. Judging by the opening weekend response, that didn't go as planned.

Perhaps it's the lack of support for the platform from developers, with no apps from Instagram and Netflix (NFLX), or the weak battery performance (something I questioned last week), but the launch is not going well. Even the strong launches in Canada and Europe are now being undermined, Suva noted, with customers returning the device, most notably for the lack of apps, and carriers are moving the Z10 to less favorable positions in their stores.

UBS analyst Amitabh Passi believes that although the near-term could be good for BlackBerry, the longer-term earnings outlook is still challenging. He cited channel fill-in, pent-up demand and a bullish tone from BlackBerry's management, including CEO Thorsten Heins, but added the stock is likely to remain volatile given the service weakness, competition, and "an un-compelling multi-screen, cloud, and content strategy." Passi rates shares "neutral" with a $13 price target.

The U.S. is the key market for any smartphone manufacturer, particularly one that's trying to compete in an increasingly crowded market place, such as BlackBerry. The company has a long road ahead of it. Starting off with such a poor reception in the most important market is certainly not going to make BlackBerry's prospects of gaining market share any better.

Shares of BlackBerry were lower in premarket trading Monday, off 4.16% to $14.29.

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.43 -1.54%
BBRY $8.93 1.48%
GOOG $548.00 -0.73%
T $32.65 -0.97%
FB $82.22 -1.18%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs