BlackBerrys stock touched two-year highs of about $11.50 in early June after it won a surprise $940 million arbitration award relating to a dispute with Qualcomm. However, the stock has declined by over 20% since then, presently trading at levels of under $9 per share. Below we take a look at some of the factors that may have resulted in the selloff.
Trefis has a $9.50 price estimate for BlackBerry, which is slightly ahead of the current market price.
BlackBerry has been banking on its software business to drive growth, but its progress appears to have slowed down in recent quarters. During fiscal Q1, software and services revenues declined by about 12% on a sequential basis to $160 million, while its total number of customer orders also declined by about 6%. BlackBerrys overall revenues have also been trending lower, amid sharp declines in both the service access fee business and the shift from a manufacturing to a licensing model in the smartphone operations. The company is expected to see its lowest-ever levels of revenue during Q2 FY18 (quarter ending August 2017), with the market consensus standing at around $221 million, compared to revenues of around $334 million in the year ago period. BlackBerry has been betting on areas such as fleet tracking and automotive technologies, announcing small acquisitions or partnerships from time to time. However, there has been little news on this front over the last quarter, and there remains little clarity as to how BlackBerry can compete at scale with rivals such as Verizon in the fleet tracking space and Tesla and Google in the automotive tech space. Analysts at Goldman Sachs also resumed coverage on the stock earlier this month, issuing a sell rating, noting that BlackBerrys enterprise mobility management offering could face more competitive pressures, as rivals such as VMware and Microsoft bundle their EMM with other products. This likely hurt the sentiment surrounding the stock.
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Top Gold Stocks To Watch Right Now: PetSmart Inc(PETM)
- [By Peter Graham]
A long term performance chart shows Blue Buffalo Pet Products roughly back up to its IPO close for retail investors while fresh pet food peer Freshpet Inc (NASDAQ: FRPT) isstill below IPO levels and pet stocksCentral Garden & Pet Co (NASDAQ: CENT) andPetmed Express (NASDAQ: PETS) have been much stronger performers in the pet sector after PetSmart (NASDAQ: PETM) was acquired by a private equity group:
- [By Peter Graham]
A long term performance chart shows Blue Buffalo Pet Products now roughly back up to its IPO close for retail investors while fresh pet food peer Freshpet Inc (NASDAQ: FRPT) is well below IPO levels and pet stocksCentral Garden & Pet Co (NASDAQ: CENT) andPetmed Express (NASDAQ: PETS) have been the best performers in the pet sector after PetSmart (NASDAQ: PETM) was acquired by a private equity group:
Top Gold Stocks To Watch Right Now: Tesla Motors, Inc.(TSLA)
- [By Peter Graham]
The Q4 2016 earnings report for electric vehicle (EV) stock Tesla Motors Inc (NASDAQ: TSLA) is scheduled for after the market closes onWednesday (February 22nd). Tesla Motorsfirst known fatality involving a Model S operating on the Autopilot system along with the controversial deal to buy Elon Musks SolarCity Corp (NASDAQ: SCTY) venture had created headwinds for the stock with thecoming earnings report being thefirst since the acquisition. A UBS analyst Colin Langan also recently commented:We continue to believe SolarCity is an unneeded distraction during a very challenging launch period.
- [By Keith Fitz-Gerald]
Tesla Inc. (NasdaqGS:TSLA), not coincidentally, is getting ready to the same thing.
Second, the company sells to a much bigger player with deeper pockets that can capitalize the long-cycle sales process and development at the same time. This is a viable alternative for management and shareholders alike. It’s also very typical for growing companies with the kind of valuable intellectual property like Ekso has that just need a little “umppph.”
- [By Travis Hoium]
Mandating solar on new buildings would be a huge boost for the solar industry, but it would have an ancillary benefit of being much cheaper than solar through traditional sales channels. Sales and marketing costs have proven to be very high for solar because sales staff often have to visit each home individually. Tesla Motors'(NASDAQ:TSLA) SolarCity, in particular, has had to lower its installation guidance multiple times over the past year, and costs have spiked because sales are becoming more difficult.
- [By Paul Ausick]
As Tesla Inc. (NASDAQ: TSLA) ramps production of its Model 3 sedan, the company is burning through cash at a rate of about $1 billion per quarter. A report at Bloomberg notes that that amounts to $8,000 a minute, or $480,000 per hour. At that rate, Tesla will burn its last dollar next August.
- [By Vikram Nagarkar]
NVIDIA has established itself as one of the key players in the self driving cars market. And it’s worth noting that at least some of NVIDIA’s gains have also come at Mobileye’s expense. Last year, Tesla Inc (NASDAQ:TSLA)switched from Mobileye’s technology to NVIDIA’s Drive PX2 platform after the driver of a Model S was killed last year while using Tesla’s autopilot feature. While the cause of the crash has been disputed by Mobileye, the result remains the same – Mobileye has conceded some business to NVIDIA. And as Paul R La Monica points out in this post on CNN Money, at least some industry observers believe that NVIDIA has the egde:
- [By Virendra Singh Chauhan]
As if this isn’t enough, NVIDIA is also making rapid progress in another segment of the AI market: autonomous driving market. Revenue from NVIDIA’s ‘Auto’ segment is up 59% YoY through the first 3 quarters of 2016. As the number of partnerships with car companies rises, expect the growth rates from the Autonomous cars space to only become steeper. To put things in perspective, consider the recent partnership with Tesla (NSDQ:TSLA). NVIDIA and Tesla recently announced that all Tesla cars will now come equipped with the NVIDIA Drive PX 2 platform to enable autonomous driving in the future. The market consensus is that NVIDIA charges Tesla around $1000 – $1500 (a huge discount to $15000 list price) for every unit of DRIVE PX 2 sold. Based on Tesla management’s comments, Tesla is expected to deliver 79,212 units in 2016. Based on this number and a $1000 price point, NVIDIA could earn $79M in incremental revenue from the Tesla deal alone, going ahead. This represents a 17.5% share of NVIDIA’s last 4 quarters revenue from the ‘Auto’ segment. And, given the fact that Tesla deliveries are nowhere near flattening out, especially as the company ramps up Model 3 production, the incremental revenue from just this one deal could be far higher in the coming years.
Top Gold Stocks To Watch Right Now: Emerson Radio Corporation(MSN)
- [By WWW.MONEYSHOW.COM]
Emerson Radio (MSN) is a marketer of consumer electronic products and various housewares.
The company has about $1.91 in cash per share, yet sells for less than half that amount. The stock trades at 7.5 times forward earnings. The company is debt free.
Top Gold Stocks To Watch Right Now: Bank of Marin Bancorp(BMRC)
- [By Lisa Levin]
Monday afternoon, the financial sector proved to be a source of strength for the market. Leading the sector was strength from Bank of Marin Bancorp (NASDAQ: BMRC) and BankUnited (NYSE: BKU).
- [By Christopher Flens-Batina]
Bank of Marin (NASDAQ:BMRC) has shot up about 40% in value in the past 2 months. Low expenses are one of the reasons for the recent growth, and free checkingaccounts are a big part of this.