Shares of Canadian tech company BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) have travelled on the proverbial roller coaster of late. Down approximately 30% from its 52-week high experienced in early June, shares of BlackBerry have consistently slid downward as investors seeking technology growth companies look toward other industry juggernauts such as Shopify Inc. (TSX:SHOP)(NYSE:SHOP) in the booming e-commerce space for growth.
Following a buy recommendation from Citron Research’s lead analyst Andrew Left (with a target price of $20 U.S., no less), investors began to once again become excited with this fallen angel in the Canadian tech space and piled into this company in the hopes of potentially doubling an investment in a short amount of time. Any time an analyst comes out with a 24-month target price which is approximately double the company’s current stock price, the market takes notice. Since the report was released however, it appears the ensuing enthusiasm has waned, as BlackBerry shares search for a new bottom.
The most recent sell recommendation by Goldman Sachs has exacerbated this slide, and led to outright confusion among investors as to which side of the story to accept with respect to the conflicting research notes available on BlackBerry. On the one hand, the company has done very well with its software development platform and partnership with major automakers to become the platform of choice; on the other hand, BlackBerry’s current position in the market is likely already more than priced into its current stock price, and the likelihood of a continued slide remains high.
With uncertainty abounding for BlackBerry, what does remain certain in my mind is that volatility is likely to continue (and perhaps increase) as further analysis comes out on this company.
Invest wisely, my friends.
