Blockbuster is a name that catches the eye of many of the older generation as it was one of the leading businesses in its field. Before Netflix Inc. (NASDAQ: NFLX) and online streaming, Blockbuster was a primary source of entertainment, offering the option to rent or buy DVDs from your local store.
The company was founded in 1985 as a rental service provider, which at its peak owned over 9,000 stores worldwide, with the majority of stores corporately owned. Now, the company has just one store left, but it has kept its operations running in 2022.
How to Buy Blockbuster (BLIAQ) Stock
Despite no real ties to the original Blockbuster branding, the company still operates as a penny stock on the market as BB Liquidating (OTCMKTS: BLIAQ).
The steps below will explain the process of how to purchase BB Liquidating.
Step 1: Pick a brokerage.
A broker acts as the intermediary between you and the stock exchange. The customer places an order to purchase a specific stock, and the broker carries out this service. For example, if you decide to buy shares in BLIAQ, then you instruct your broker to buy the number of shares you request at a specified price.
The broker usually charges a fee in return. The fee varies depending on the broker, so research costs involved in the transaction, especially for a penny stock.
Step 2: Decide how many shares you want.
Fund your account at an appropriate amount suitable to your position. Take into account the amount of risk you want to take and the percentage of your account attributed to BLIAQ shares as penny stocks come with high risk.
Starting with a small investment and adding consistently over time is used by many investors. However, before you make your purchase, consider how you will enter the market.
Step 3: Choose your order type.
You can choose from various order types, but the primary two are market order and limit orders.
Market orders mean you acquire the shares at a price dictated by the market. Market orders mean that your order will likely be filled by the market right away.
Limit orders mean that the price you buy the stock at is decided by you. You determine what price you buy the shares at, but your order may not get filled.
Step 4: Execute your trade.
After all the necessary steps have been completed, all you have to do is buy the shares. Once completed, you can monitor your position and your portfolio by using the app or website and going directly to your portfolio.
Where to Buy Blockbuster Stock
It is important for investors to find the best brokers with the lowest fees. Brokers offer a range of benefits on their platforms to help users gain the best investing and trading experience possible. If you are looking for a broker that suits your needs and offers Blockbuster stock, make sure to check out the platforms in the table below.
- Best For:Active and Global TradersSecurely through Interactive Brokers’ website
- Best For:Traders of All Levelssecurely through Moomoo's website
- Best For:Mobile Userssecurely through Plus500's website
- Best For:Momentum traderssecurely through Centerpoint Securities's website
- Best For:Intermediate Traders and Investorssecurely through Webull's app
BLIAQ Stock History & Value
Blockbuster was one of the biggest names during its time and left an impressive legacy as a company. The brand was unlike any other. With minimal competition in the market, it was one of the most significant businesses around.
People were able to rent movies and video games by signing up for an account, visiting the store and paying to rent the movie or game. In addition, the company also earned its revenue through late payments, which would be charged to individuals if they did not return a product on time.
The company’s share price was at a high of $18.50 in the early months of 2002 and remained consistent for a few years. However, as alternatives arose for consumers, the stock suffered from services such as DVD by mail, streaming, videos on demand and movie theaters.
In the early stages of 2021, Blockbuster was one of many stocks impacted by the WallStreetBets Reddit pages. The stock rallied during the end of January to reach highs of $0.30 as the meme stock made gains.
Currently, in 2022, the company does not have any ties to the assets or Blockbuster brand, which Dish Network bought in 2011, and the brand has no real value for shareholders anymore.
Blockbuster: What Analysts Are Saying
Blockbuster currently operates as a penny stock with limited analyst reviews.
Macroaxis Bear Case
Limited bear cases exist on the stock because of the nominal size of the company. However, Macroaxis, a wealth optimization platform, recommended a “strong sell” on BLIAQ shares.
CNN Bull Case
According to CNN, one analyst has a 12-month price target for BB Liquidating with a target of $0.75. However, this target would require an enormous increase from its current price. The Hold rating was also unchanged since September.
Pros and Cons of Blockbuster
- Low price to buy penny stocks
- Large potential upside
- High risk because of penny stock status
- Unlinked with original Blockbuster company
- Earnings have fallen progressively over the years
Is Blockbuster a Buy, Sell or Hold?
During its peak, Blockbuster was a formidable force and in 2004, the company earned revenue of $5.9 billion across its stores. However, the rise of competitors and its biggest mistake of not buying Netflix set the company up for its ultimate demise.
The company attempted major changes to compete in the market, although its new brand, Blockbuster Online, was already years behind its rival Netflix. In addition, Blockbuster lost a market value of 75% between 2003 to 2005 and has not recovered since.
Fast forward to 2022, and the cons heavily outweigh the pros for the stock. In fact, it is a struggle to see a reason to buy the shares other than sentiment. A Sell rating on the stock seems most logical unless unusual circumstances such as a short squeeze were to occur.
Frequently Asked Questions
How many Blockbusters are left?
The company now has just one Blockbuster store left in Bend, Oregon, which has been turned into an Airbnb and is still in operation because of its loyal customer base.
Who was Blockbusters’ competition?
Competitors for Blockbuster include Outerwall, Redbox, Cummins-Alisson and the biggest company, Netflix.
About Sam Boughedda, Stock Market Analyst
He is an expert in the following spaces: stock market news writing, analysis, and research.