This Day On The Street
Continue to site
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

Traders Bet Big on BlackBerry:

NEW YORK (TheStreet) -- BlackBerry (BBRY - Get Report) is losing less money -- and a lot more business. And that, say investors on, is progress capable of returning the company to profitability. Though it's not enough to show the beleaguered smart phone company's turnaround plan has taken hold.

$BBRY Mixed bag... BlackBerry lives to fight another day is how I'd frame it.

-- matthew stafford (@vanhalenboss) Mar. 28 at 08:17 AM

Friday morning, BlackBerry reported quarterly earnings that beat Wall Street consensus estimates for earnings per share, but badly missed sales expectations. Blackberry posted a loss of 8 cents per share, excluding some items, on $976 million in revenue. Wall Street analysts had expected a 57-cent EPS loss on $1.11 billion in sales, according to estimates on the Analyst Ratings Network. Sales fell 64% from the same period a year ago.

The stock rose more than 6% in premarket trading, though it shed much of those gains during the conference call leading up to the opening bell. The stock opened 2.76% higher.

Some cashtaggers expressed surprise that the gains didn't hold through the open. The company can't be expected, they argued, to stabilize sales as it slashes expenses.

$BBRY Do you really expect BB to improve revenues in a single quarter?! restructuring takes time and judge in the next few quarters

-- Khaled (@TwitsTrader) Mar. 28 at 08:18 AM

Sentiment on the stock is 89% bullish, according to StockTwits' analytics. Traders see positives in BlackBerry's ruthless cost reductions, allowing it to promise break-even results by the end of fiscal 2015.

"BlackBerry is on sounder financial footing today with a path to return to growth and profitability," said CEO John Chen in a statement. "We have significantly streamlined operations, allowing us to reach our expense reduction target one quarter ahead of schedule."

The company has plenty of cash to absorb more losses while Chen continues to implement the company's turnaround plan. Blackberry said it has $2.7 billion in cash, cash equivalents, short-term and long-term investments as of March 1.

$BBRY long term outlook still remains bullish though.

-- StandpointCapitalLLC (@StandpointCapitalLLC) Mar. 28 at 09:00 AM

@vanhalenboss I agree...still a long slog ahead, and competition is not standing still. $BBRY

-- Syntec Ventures (@SyntecVentures) Mar. 28 at 08:17 AM

Traders also see bullish signs in the growth of BlackBerry's messenger application.

$BBRY BBM crossed 100M users , actual 113M :))

-- Wilson (@LittleRedDot) Mar. 28 at 08:32 AM

Much has been made of the importance of messaging applications since Facebook (FB) purchased messaging application service WhatsApp for $19 Billion in February.

At the time of Facebook's mostly stock purchase of WhatsApp, the company had 450 million users. Some traders argue that the simple math of dividing the purchase price by the user base puts a value of $42 on each messenger user. Applying that worth to BlackBerry's 113 million messenger users would value BlackBerry Messenger alone at $4.7 billion.

The entire company has a market cap of $4.69 billion.

1 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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBRY $6.69 0.15%
AAPL $92.69 -0.59%
FB $119.49 1.40%
GOOG $711.11 1.40%
TSLA $214.84 1.60%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs