BB: Blackberry Stock Price Forecast Ahead of Earnings

Summary:

In this Blackberry stock price analysis, we explain what to expect ahead of the company's quarterly earnings set for Thursday this week

The Blackberry stock price will be in the spotlight this week as the company publishes its quarterly results on Thursday. The BB stock is trading at $12.80, which is 36% below this month’s high and 55% below the highest level this year. The company has a market capitalization of more than $7.25 billion.

Blackberry news. Blackberry has become a favorite stock among many retail traders. This has seen it become one of the most actively traded meme stocks. As a result, its stock is currently 392% above the lowest level in 2020. Therefore, the company will be in the spotlight this week as it publishes its results. Analysts expect that the company’s revenue dropped from $210 million in the fourth quarter to $171 million in Q1.

They also see its earnings-per-share falling from $0.03 to -$0.05. Data compiled by SeekingAlpha shows that the company has a good record of beating analysts estimates on EPS. It has beaten analysts’ forecasts in all quarters since 2016. It missed both revenue and EPS in the previous quarter.

Blackberry has also struggled. Its pivot to Internet of Things (IoT) and cybersecurity has seen its total revenue falling from more than $1.3 billion in 2016 to $830 million in 2020. Its losses have also ballooned to more than $1 billion. Analysts have been relatively muted on the stock because of its meme nature. The latest estimate was in April, when Canaccord Genuity boosted its price target to $9. So, what next for the Blackberry stock price ahead of earnings?

Blackberry stock price analysis

The daily chart shows that the BB stock price has struggled lately as its momentum has waned. It has dropped from $20 to the current $12.80. Along the way, it has moved to the 61.8% retracement level. It also remains slightly above the 25-day and 50-day moving average (MA).

It has also formed a descending channel pattern. Therefore, in my view, I suspect that the shares will likely bounce back higher ahead or after it delivers its earnings. However, investors should expect elevated volatility during this period.