Blackberry Stocks Drop as 4th Quarter Earnings Miss Expectations

Posted by Adegbotolu Kehinde Erastus -
Scope Markets

Key points

  • Blackberry stocks dropped 8.14% after the 4th quarter earnings release
  • Executives blame limited patent licensing for the revenue shortfall

Blackberry stocks dropped 8.14% after Q4 earnings missed expectations. The company posted Q4 revenue at $215 million, missing the forecast of $245.1 million.

The company, which was once a force to reckon with in the mobile industry, has now transitioned into a cybersecurity and software company over the years. Its car software QNX, which Volkswagen and Ford automobile company uses, has been affected by global chip shortage due to the pandemic.

The CEO John Chen is quoted saying the company had experienced positive growth in the last quarter for their software’s (QNX and Spark) despite challenges from global chip shortages.

Blackberry executives also indicated that revenue shortfall for the quarter was due to limited patent-licensing as negotiations to sell some patents, which is related to mobile devices, messaging, and wireless networking to an unknown buyer, had to be stopped due to accounting rules.

Technical outlook

Earlier this year, Blackberry stocks were among the meme stocks (GameStop corporation, AMC Entertainment Holdings Inc and Nokia) heavily short squeezed by Reddit forum r/WallStreetBets members causing the stock to surge to a 52week high.

Blackberry stocks
Blackberry daily time frame

The chart shows that price has broken out from an ascending trendline that has maintained a bullish momentum from October 2020. Traders can look to short this stock, with the next support level coming up at $6.48. However, a close back above the ascending trend line will revive bullish interest.

Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Funding Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we build over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
5 Cork Street, Belize City, Belize C.A.


+44 2030 516959

Risk Disclaimer

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the International Financial Services Commission of Belize (“IFSC”) under the license numbers 000274/222 and 000274/221. The registered address of Scope Markets Ltd is, 5 Cork Street, 1708 Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions such as EU Member States, Iceland, Norway, Liechtenstein, Afghanistan, Cote d'Ivoire, Cuba, Iran, Libya, Myanmar, North Korea, Sudan, Puerto Rico, USA, Syria, and Ecuador. Please check Restricted Countries.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2020 Scope Markets. All Rights Reserved.