NEW YORK (TheStreet) -- BlackBerry (BBRY) fell 5.5% to $9.87 Friday after confirmation from that Department of Defense that it isn't buying 80,000 smartphones from the Canadian company as previously reported.
Earlier this week the DOD issued a press release detailing a new mobile network for the agency. The mobile network will support more than 100,000 devices, including 80,000 BlackBerry devices. Some reports took that to mean the agency purchased 80,000 new devices from the Canadian company, but that is untrue.
In a statement given to The Verge, the DOD confirmed the network will simply support 80,000 BlackBerry smartphones that are already deployed. The agency announced no plan to purchase new devices from the company.
BlackBerry notably issues press releases when it sells units to enterprise customers. The company issued no press release concerning a sale to the DOD.
TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: