Blackberry Stock Price Forecast: Will This Relief Rally Hold?

Summary:

In this Blackberry stock price forecast, we explain what to expect after the stock bounced back in the past trading session.

The Blackberry stock price bounced back on Monday as the rest of the meme stocks resumed their rally. The BB stock rose to $15.77, which was 13% above its close on Friday. It then added more than 2.4% in extended hours, bringing the company’s total market value to more than $8.93 billion. The shares have jumped by almost 100% from its lowest level in March.

What happened: Blackberry is a technology company that is best known for its role in the phone industry. Before the iPhone, Blackberry phones were the most exclusive ones. After failing to capture market share in the industry, the company pivoted to cybersecurity and Internet of Things (IoT) solutions. However, the company’s growth has been a concern for years as its revenue has dropped and its losses increased.

Blackberry has now become one of the most loved stock by retail investors. In January, the stock surged from $6 to more than $28. It then crashed to a low of $7.72 in March. Interest resumed in the past few weeks, which pushed the price substantially higher. Other meme stocks like AMC and Blackberry have also surged as well.

Still, most long-term investors are still worried about the company. For one, its valuation is relatively stretched considering that its path to profitability is narrow. Also, there are concerns about competition in the sector. For now, though, the BB stock price will continue to trade in line with the performance of the overall meme stocks universe.

Blackberry stock price outlook

The four-hour chart shows that the BB stock price bounced back after it erased some of its gains last week. The shares are still about 80% below the year-to-date high. They are also 25% above the highest point on March 15. The upside is being supported by the 15-day and 25-day moving average (MA).

At this stage, it is relatively difficult to predict the overall outlook of the stock because of the rising volatility. However, in my view, I believe that the shares will retreat below Friday’s low of $13.70 because relief rallies tend to be bumpy. In the longer term, though, we can’t rule out a situation where the price retests this month’s high of $20.13.