EC BlackBerry - A Lot More Valuable Than Just A Meme Stock

Meme stocks run on momentum. As long as there are enough investors egging the stock on, and coming up with new reasons to buy and HODL, the stock is on an uptrend. We saw that happen to GameStop in January (GME) and then with AMC in June

Now, it seems like meme hypers have turned their attention to BlackBerry (BB). The stock closed at $8.59 on May 25 before all sorts of news started emerging hyping up the company on social media, especially on the subreddit WallStreetBets. By June 3, BlackBerry stock was up 85% at $15.88. 

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As is the case with meme stocks, the fundamental strengths of BlackBerry are rarely discussed on WallStreetBets. A June 4 post talking about BlackBerry, which has been upvoted over 7,800 times and has almost 1,000 comments, talks about a factory worker’s wonderful experience at BlackBerry. The issue is the experience is from the heydays of BlackBerry, and the comments are all about how BlackBerry is a great stock to invest in because of the poster’s life-changing experience.

These are true meme stock stories that make absolutely no sense to seasoned stock market investors.

What’s Next for BlackBerry?

BlackBerry stock has since fallen to $12.8 as the meme stock rally has started fizzling out. AMC has dropped from $62.55 on June 2 to $55.69 on June 21. 

Does this signal the end of the meme stock phenomenon? Unlikely, says Catherine Keating, BNY Mellon Wealth Management CEO. At the CNBC Evolve Global Summit in the first half of June, she said, “This is a permanent change. It is a new generation of investors.”

Retail investing got a huge boost during the pandemic and grew faster than institutional trading in the last year. The share of retail investing grew from 20% of trading activity to 35%. “It is a permanent phenomenon and retail investors are very important to the market and the market is important to retail investors,” Keating said.

However, what sets BlackBerry apart from the other meme stocks is the fact that it has switched over from being one of the world’s biggest smartphone players to becoming a corporate software and service provider. 

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Disclaimer: All the information in this article - is published in good faith and for general information purpose only. Hashtag Investing does not make any warranties about the completeness, ...

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