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BlackBerry shares fall, underperforming major tech companies

EditorMalvika Gurung
Published 10/19/2023, 12:22 AM
© Reuters.

BlackBerry (NYSE:BB) Ltd.'s shares experienced a sharp decline on Wednesday, falling by 4.5% to $3.54 per piece amidst a broad market downturn that impacted major indexes. This downturn disrupted BlackBerry's brief two-day winning streak, underscoring its weaker performance compared to leading tech companies such as Alphabet (NASDAQ:GOOGL) Inc., Apple Inc (NASDAQ:AAPL)., and Motorola Solutions Inc (NYSE:MSI).

The share price drop also left BlackBerry trailing $2.21 behind its 52-week high of $5.75 per share, which was achieved earlier in September. This decline in BlackBerry's stock value is further complicated by reduced market interest; the company's trading volume of 4.6 million was significantly below its 50-day average. This low trading volume has exacerbated BlackBerry's underperformance in the market.

According to InvestingPro data, BlackBerry's market capitalization stands at $2.07 billion, with a negative P/E ratio of -3.71, suggesting that the company is not profitable.

InvestingPro Tips also provide some insight into BlackBerry's current situation. Analysts anticipate sales growth in the current year, which could be a positive sign for the company's future performance. On the other hand, the company operates with a poor return on assets and stockholders receive poor returns on book equity, which could be contributing to the recent decline in the company's stock value. Moreover, the company's stock has fared poorly over the last month, with a one-month price total return of -30.8%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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