BlackBerry Spikes On Apple Buyout Rumor...But News Is Old
BlackBerry Ltd (NASDAQ: BBRY) was up 1.5 percent on Wednesday afternoon. After trading near the $10.12 area at 1:10 p.m. ET, shares rose as high as $10.37 by 1:30 p.m.
The reason for the catalyst -- according to traders -- appears to be an article published by The Inquirer shortly before the price movement.
Of note, the article is a recap of all existing analysis of BlackBerry-Apple Inc. (NASDAQ: AAPL) M&A chatter; it does not provide any new information.
Earlier this week, merger rumors between the two tech giants pushed BlackBerry shares up nearly 6 percent. Four months ago, a separate Samsung M&A rumor -- that did not come to fruition -- boosted the stock nearly 30 percent.
As Global Equities Research analyst Trip Chowdhry recently told Benzinga, "I think the play with BlackBerry is a partnership play, not at all an acquisition.
"If they even have to spend $1, they would rather spend [it] on something that enhances the world, which is very focused on instant responses. I don't think BlackBerry is in that space," he added.
At the time of this writing, BlackBerry shares were trading at the $10.25 level and following back to Wednesday's open price of $10.22.
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