Why Is BlackBerry Stock Going Up? Meme Stocks Are Taking Off Again.

Textual content dimension

A traditional BlackBerry gadget.


Photograph by Alex Wong/Getty Photographs

The

BlackBerry

meme engage in has returned with a vengeance.

In the to start with four months of January, BlackBerry stock (ticker: BB) nearly quadrupled, hitting a 10-calendar year substantial, apparently driven by aggressively bullish retail investors in the Wall Street Bets team on Reddit—not contrary to the sharp rallies in shares of the videogame retailer

GameStop

(GME) and the film theater operator

AMC Leisure Holdings

(AMC).

BlackBerry strike a multiyear document large of $25.10 on Jan. 27—but it did not stay there for very long, slipping again to solitary digits by late March.

But now the meme stocks are back again: On Tuesday, AMC rallied 23%, to $32.04, GameStop gained 12%, to $249.02, and BlackBerry jumped 15%, to $11.56, its best amount in far more than two months. On Wednesday, AMC shares almost doubled, GameStop stock included a further 13%, and BlackBerry attained an additional 32%.

While quite a few people today could still keep in mind BlackBerry for its as soon as-ubiquitous smartphones, the business extensive in the past stopped producing them. BlackBerry now is mostly a software package organization, with a focus on equally cybersecurity and computer software for the automotive field.

The rally in component could replicate buyers attempting to spur a quick squeeze. There were about 50.2 million BlackBerry shares bought limited as of May well 14, about 9% of the company’s shares fantastic, and equal to close to 4 days of ordinary trading quantity in the stock about the previous a few months.

For the January 2022 fiscal 12 months, analysts anticipate BlackBerry to write-up profits of $824 million, down about 10% from the $919 million claimed in the prior calendar year. The Road expects a reduction for the calendar year of about 5 cents a share. With today’s transfer, BlackBerry has a marketplace cap of about $6.5 billion.

Just 4 of the 16 analysts who observe BlackBerry have a Get score on the inventory. The average selling price concentrate on on BlackBerry shares is $7.75, and no analyst has a concentrate on higher than $10.

BlackBerry didn’t right away answer to a ask for for comment.

Publish to Eric J. Savitz at eric.savitz@barrons.com