Blackberry (TSX:BB)(NYSE:BB) The stock is rising again. Reddit and . But after a surge in mentions Twitter, it rose 12% in a single trading day. It looks like meme stocks are on the rise again. Blackberry is not only growing, but GameStop is also closing in on its all-time high. In this article, I’ll explore BlackBerry’s latest boom and whether there may be a “new little squeeze” in the works.
reddit bullish again
It’s clear that Reddit is accelerating again on BlackBerry. On Wednesday, Bibi was The fifth most popular stock on reddit This is followed by the usual meme suspects like GameStop and AMC. According to at least one source, Bibi was majority of Mentioned the stock on Twitter for a day, although it appears to have bottomed out.
Another little squeeze?
As much as it is happening with Bibi, maybe Another Small Squeeze at Work.
According to ShortData.ca, as of June 1, Blackberry sold less than 14% of its trading volume. That’s a very high percentage of trading volume, although BB didn’t crack the site’s top 10 list of TSX stocks by a small amount. Still, we have a fairly large contingent of BB shorts that can be squeezed. Just a few weeks ago, BB was trading for only $9.7. If WallStreetbets’ momentum continues, it could climb to $20. At that point, shorts borrowing at $9.7 would have to pay twice the amount they borrowed. Covering the deficit would be a very real possibility.
What about long time?
As we’ve seen, BlackBerry has been pretty fast lately.
But what about the long run? Can BlackBerry really continue this momentum over a period of years rather than weeks? If so, what are the reasons to think that he can do so?
As 2021 has shown, Reddit has the power to ignite quick, bullish rallies in stocks. But if the January/February meme stock craze is any indication, these things could be crashing very post haste.
As far as BlackBerry is concerned, its current rally is not well supported by the actual results of the business. In its most recent quarter, the company saw its revenue decline 34% year over year and reported a loss of $313 million. These are not good numbers. If this trend continues, Blackberry stock is likely to fall again. However, BB has some good things going for it, like new contracts and business relationships with Chinese automakers. heroine. These are very promising “operational” developments, but it’s inevitable: BlackBerry’s most recent financial results weren’t good.
What a strange year this has been for BlackBerry.
After rising to a multi-year high and then crashing, it has risen again. None of this — the first rally or the current one — has much to do with the company’s actual performance, but that hasn’t deterred Reddit. Looks like we’re in a “meme stocks 2.0” rally, where Reddit is once again taking the stock to new highs with sentimental, nostalgic pricing. Whether there will be another small squeeze remains to be seen. But if there is, Wall Street will once again crow.
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John McKay, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s board of directors. silly contributor Andrew Button Have no position in any of the stocks mentioned. David Gardner Owns shares of Amazon and GameStop. tom gardner Twitter owns shares. The Motley Fool owns and recommends shares in Amazon and Twitter. The Motley Fool recommends Blackberry and Blackberry and recommends the following options: long January 2022 $1920 call on Amazon and short January 2022 $1940 call on Amazon.
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