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Time To Buy Blackberry?

Published 12/14/2015, 01:36 PM
Updated 05/14/2017, 06:45 AM
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BlackBerry (O:BBRY) has had a rough time in the market throughout the year, and that rough time is continuing with early declines today. However, things look like they may start going in the positive direction for the company relatively soon. With an incredible new product that's likely to lead to a long line of successful releases, things are starting to look up for the company. However, is now the time to buy? Today, we'll talk about why BBRY had such a rough 2015, what they've done that's making it look like a solid year is coming in 2016 and what whether or not now is the time to get involved in the stock.

Why BBRY Has Struggled Throughout 2015

BlackBerry has seen its share of bad days throughout the year 2015. However, the problems didn't just start this year. In fact, the struggle has been ongoing for quite some time. Since 2011, BBRY simply hasn't been the same stock, known for solid performance. Understanding the cause of the decline is relatively simple. Years ago, BBRY was the king of the smartphone industry. However, throughout the years, this changed dramatically. As the smartphone industry evolved, things changed dramatically for BBRY.

As more and more competition came into the smartphone industry, the industry as a whole evolved. New operating systems soon took the vast majority of the market share. Apple's (O:AAPL) iOS and Google's (O:GOOGL) Android quickly became the operating system of choice among consumers. While BlackBerry remained known for offering incredible hardware, hardware only went so far. Soon, BlackBerry smartphones accounted for less than 1% of the smartphones sold around the world. The king had essentially been dethroned.

What BBRY Has Done To Solve The Problem

BlackBerry made a key change this year. The company knew that it simply couldn't keep up with the competition in the world of smartphone operating systems. However, it also knew that its hardware was second to none. So, in order to take advantage of its strengths, BBRY has admitted its weaknesses. Recently, the company launched a new, and very unique smartphone product. The product is known as Priv. What makes this product so unique is the fact it combines the incredible hardware that BBRY was known for creating with the overwhelmingly popular Android operating system. This proved to be a big hit. Finally, BlackBerry was sell smartphones again. In fact, the company sold so many of these phones that shipments were delayed. As a result of the overwhelming popularity of the new phone, we can expect to see more phones released from BBRY that will fall in line with this product.

What We Can Expect To See From BlackBerry Stock Moving Forward

Moving forward, I have an incredibly bullish opinion of what we can expect to see from BBRY moving forward. While it's clear that the company has struggled for quite some time, it's also clear that BBRY is moving in the right direction by creating a relationship between their brand and the overwhelmingly popular Android operating system. Considering the fact that the success of the Priv is likely to lead to more smartphones that are operated using Android, I'm expecting to finally see positivity from BBRY with regard to handset profits in 2016. From there, the sky is the limit. Also, going back to the original question posed in this post, yes, I do believe that now is a great time to buy. The simple fact is that BBRY is trading at lows that, following the next earnings report, we're not likely to see again for quite some time. Of course, it's always a good idea to do your own research or speak to your financial advisor with regard to your plans, but if you're looking for an opportunity, you may want to take a hard look at BBRY.

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