Should You Consider BlackBerry Stock Right Now?

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  • BlackBerry must find a way to equate their technology solutions business, to their Mobile Devices business expansion.
  • The acquisition of Good Technologies will be a good move for BlackBerry.
  • BlackBerry still needs to unveil clear growth potential for the stock to move higher.

BlackBerry (BBRY) is having trouble quantifying growth potential and BlackBerry stock has fallen consistently for the last year. BlackBerry's 200 day moving average doesn't inspire much confidence, and the stock has under-performed major indices for most of the year.

BBRY stock price chart

BlackBerry stock price chart by amigobulls.com

The good news for BlackBerry investors though is that there's a possibility that BlackBerry could turn a profit in 2016 if the company's latest model, BlackBerry Priv lives up to the interest it has generated. Analysts have praised BlackBerry's Priv following the launch, and it could turn out to be a good move, given that the phones higher margins will be helpful to BlackBerry in their pursuit of profits, if they manage to sell a good number of handsets.

Also, BlackBerry's acquisition of Good Technologies, a key rival for $425 in cash,  should work well for BlackBerry, especially given that Good Technologies actually had a higher market share in the enterprise mobility management software market in 2014. Also, the acquisition has a number of strategic advantages for BlackBerry, ranging from an additional revenue of about $160 million and cross platform capabilities, which were earlier limited only to BlackBerry platforms until recently. The move will also help BlackBerry acquire 6,200 customers.

However, for BlackBerry stock to sustain any upward movement, the company will have to unveil a clear, sustainable growth path that can drive the company's turnaround.

Disclosure: I do not hold any positions in the stocks mentioned in this post and don't intend to initiate a position in the next 72 ...

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