Could BlackBerry's Q1 Earnings Beat Further Fuel The Stonk Rally?

Could BlackBerry's Q1 Earnings Beat Further Fuel The Stonk Rally?

Canada-based security software company BlackBerry Limited (BB), a Reddit-favorite stock, reported first-quarter earnings that matched analysts’ expectations while revenues beat estimates.

What Happened: BlackBerry’s first-quarter net loss narrowed to $62 million, or $0.11 per share, from $315 million or $0.56 per share in the year-ago quarter.

The adjusted loss was $0.05 per share, while revenue fell 17% from the year-ago period to $174 million. Analysts, on average, had expected the company to report an adjusted loss of $0.05 per share on sales of $171.25 million.

Why It Matters: BlackBerry is among the so-called stonks — stocks favored by the retail crowd. The stock continues to see high interest on Reddit’s r/WallStreetBets forum and its year-to-date gains stand at 91.25%.

Blackberry’s earnings results appeared to please the company’s supporters, based on the posts on the WSB forum.

A user with the handle u/TexasThrowDown on the WSB forum noted that “BlackBerry isn't a squeeze play, but a long-term value play.”

“BBTO100!!! To the moon and #MARS!,” read another post.

Price Action: BlackBerry shares closed 3.5% lower in Thursday’s regular trading session at $12.68.

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