Is BlackBerry’s Stock Undervalued?

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With shares of BlackBerry (NASDAQ:BBRY) trading around $9, is BBRY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

BlackBerry is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software, and services, it provides platforms and solutions for seamless access to information such as email, voice, instant messaging, SMS, Internet, intranet-based applications, and browsing. Its products and services feature the BlackBerry wireless solution, the Research In Motion Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware.

Facebook Inc.’s (NASDAQ:FB) $19 billion bid for fast-growing mobile-messaging startup WhatsApp sent shares of BlackBerry higher before the opening bell on Thursday as investors placed bets that the smartphone maker’s own messaging platform has been undervalued. BlackBerry shares were up as much as 9 percent in trading after the bell on Wednesday as the deal boosts valuation metrics around the company’s own BlackBerry Messaging service.

BlackBerry Messaging, or BBM, was a pioneering mobile-messaging service, but its user base has failed to keep pace with that of WhatsApp and other upstarts, in part because BlackBerry had long refused to open the service to users on other platforms. WhatsApp, with a user base of about 450 million, has grown rapidly. Its service works on Apple Inc.’s (NASDAQ:AAPL) iOS platform, Google Inc.’s (NASDAQ:GOOG) market-dominating Android operating system, and with devices powered by both the Windows and BlackBerry operating systems.

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