BlackBerry (NYSE:BB) Stock, Quote.Headers.trade-ideas

BlackBerry

BlackBerry, once known for being the world's largest smartphone manufacturer, is now exclusively a software provider with a stated goal of end-to-end secure communication for enterprises. The firm provides endpoint management and protection to enterprises, specializing in regulated industries like government, as well as embedded software to the automotive, medical, and industrial markets.

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FLEX

Flex Ltd (NASDAQ: FLEX) reported first-quarter fiscal 2025 adjusted earnings per share of 51 cents, beating the Zacks Consensus Estimate by 24.4%. The bottom line compared favorably with the prior-year quarter&#39;s 47 cents per share.

FLEX&#39;s Q1 Earnings Surpass Estimates, Revenues Decline Y/Y

Tech

BlackBerry Limited (NYSE: BB) division, QNX, recently strengthened its software portfolio by unveiling cutting-edge QNX Containers. The move represents a significant advancement in container technology for QNX-based devices.

Blackberry Boosts Software Portfolio With QNX Containers

BlackBerry NOC 10

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BlackBerry unveils CylanceMDR Pro, a cutting-edge managed detection and response (MDR) service built on an Open XDR platform powered by AI. Per company&#39;s recent outlook,  cybersecurity revenue is expected to be between $82 million and $86 million in Q2.

BlackBerry Launches AI-Powered CylanceMDR Pro Cybersecurity For Businesses: Details

BlackBerry Ltd

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<p><strong>Flex Ltd</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/flex#NASDAQ">FLEX</a>) reported first-quarter fiscal 2025 adjusted earnings per share of 51 cents, beating the Zacks Consensus Estimate by 24.4%. The bottom line compared favorably with the prior-year quarter&#39;s 47 cents per share.</p>
<p>Revenues fell 8% year over year to $6.3 billion. However, it surpassed the consensus mark by 7%. The downside resulted from a slowdown in the Agility and Reliability Solutions business segments.</p>
<div class="chart_embed">
<h3>Flex Ltd. Price, Consensus and EPS Surprise</h3>
<p><img alt="Flex Ltd. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/46/1721913824.png" style="height:265px; width:574px" title="" /></p>
<p>Flex Ltd. price-consensus-eps-surprise-chart | Flex Ltd. Quote</p>
<p>Following the announcement, shares were up 6.86% and closed the session at $31.76 on Jul 24. In the past year, the stock has gained 12.3% compared with the sub-industry&#39;s rise of 12.1%.</p>
</div>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/37/72446.jpg?v=336980060" /></p>
<p>Image Source: Zacks Investment Research</p>
<h3>Segment Details</h3>
<p>The Flex Reliability Solutions Group encompasses Health Solutions, Automotive and Industrial businesses. Revenues were down 10% year over year to $2.9 billion. The downtick is caused by weak macro trends in core industrial areas, offset by momentum in automotive, cloud, data center power and healthcare devices.</p>
<p>The Flex Agility Solutions Group comprises Communications &amp; Enterprise Compute or CEC and Lifestyle and Consumer Devices businesses. Revenues were down 5.5% to $3.4 billion from the prior-year figure of $3.6 billion. Positive trends were observed in cloud amid softness in enterprise IT and non-cloud-related networks.</p>
<h3>Operating Details</h3>
<p>Non-GAAP gross margin increased 50 basis points (bps) on a year-over-year basis to 7.8% in the reported quarter.</p>
<p>Non-GAAP operating income came in at $306 million, up from the prior-year level of $293 million. Non-GAAP operating margin expanded 50 bps to 4.8%.</p>
<p>Non-GAAP selling, general &amp; administrative expenses totaled $189 million, down 9% year over year.</p>
<p>The adjusted operating margins of the Flex Reliability Solutions Group was 5%, on par with the prior year&#39;s level. Adjusted operating margins of the Flex Agility Solutions Group improved 120 bps to 5.3%.</p>
<h3>Balance Sheet &amp; Cash Flow</h3>
<p>As of Jun 30, 2024, cash &amp; cash equivalents and long-term debt (net of current portion) were $2.24 billion and $2.6 billion, respectively, compared with $2.3 billion and $3.3 billion a year ago.</p>
<p>In first-quarter fiscal 2025, the company generated cash flow from operating activities of $340 million and an adjusted free cash flow of $232 million.</p>
<h3>Guidance</h3>
<p>For second-quarter fiscal 2025, Flex expects revenues to be between $6.2 billion and $6.8 billion.</p>
<p>Management expects adjusted earnings in the range of 52-60 cents per share, excluding 1 cent for net restructuring charges, 8 cents for stock-based compensation expense and 3 cents for net intangible amortization. Adjusted operating income is projected to be between $310 million and $350 million.</p>
<p>For fiscal 2025, Flex expects revenues to be between $25.4 billion and $26.4 billion. It anticipates adjusted earnings in the range of $2.30-$2.50 per share, excluding 32 cents for stock-based compensation expense, 25 cents for net restructuring charges and 13 cents for net intangible amortization.</p>
<p>Management further anticipates momentum in key end-markets - cloud, power, auto and medical devices. However, rising global tax rates and a dynamic macro backdrop remain headwinds.</p>
<h3>Zacks Rank</h3>
<p>Flex currently carries a Zacks Rank #2 (Buy).</p>
<h3>Performance of Other Companies</h3>
<p><strong>BlackBerry</strong>&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bb#NYSE">BB</a>) reported first-quarter fiscal 2025 adjusted loss per share of 3 cents is narrower than the company&#39;s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.</p>
<p>Shares of BB have lost 48.9% in the past year.&nbsp;</p>
<p><strong>Badger Meter, Inc</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) reported earnings per share of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter&#39;s EPS of 76 cents.</p>
<p>Shares of BMI have gained 22% in the past year.&nbsp;</p>
<p><strong>SAP SE</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>) reported second-quarter 2024 non-IFRS earnings of &euro;1.10 ($1.18) per share, climbing 59% from the year-ago quarter&#39;s levels. The Zacks Consensus Estimate was pegged at $1.01.</p>
<p>In the past year, shares of SAP have gained 57.9%.</p>
<p><a href="https://www.zacks.com/stock/news/2309145/flex-s-q1-earnings-surpass-estimates-revenues-decline-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2309145">To read this article on Zacks.com click here.</a></p>


FLEX's Q1 Earnings Surpass Estimates, Revenues Decline Y/Y

<p><strong>BlackBerry Limited</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bb#NYSE">BB</a>) division, QNX, recently strengthened its software portfolio by unveiling cutting-edge QNX Containers. The move represents a significant advancement in container technology for QNX-based devices.</p>
<p>QNX Containers facilitate the functioning and management of container technology on QNX-based devices. They offer a standards-based environment that harnesses the power of containerization while upholding the safety, security and reliability of the QNX microkernel model.</p>
<p>The state-of-the-art containers restrict features, including networking, filesystems, device access, memory access, communications and CPU, prioritizing secure and isolated embedded containers without compromising the top-notch performance and hard real-time capabilities of the QNX OS 8.</p>
<p>A notable aspect of QNX Containers is their ability to synchronize with the QNX Hypervisor environment. This allows the simultaneous use of both virtual machines and containers, empowering developers with flexibility in their choice of real-time operating systems and containerization strategies, per QNX.</p>
<p>QNX further highlighted its collaboration with multiple customers who have standardized its Hypervisor and OS, and these customers are eager to leverage QNX Containers.</p>
<p>Apart from adhering to the Open Container, QNX Containers support Kubernetes toolchains and Docker repositories. Also, the design of the container aligns with ISO 21434 security processes, impacting customer programs with functional safety certification.</p>
<p>QNX Containers are expected to be available in fourth-quarter 2024.</p>
<p>Waterloo, Canada-based BlackBerry is a global provider of intelligent security software and services to enterprises and governments. The company uses machine learning and artificial intelligence to provide cutting-edge solutions for cybersecurity, safety and data privacy. BlackBerry has aligned its software and services business around two key market opportunities &mdash; Cybersecurity and the Internet of Things (IoT).</p>
<p>In the last reported quarter, BlackBerry&#39;s revenues plunged 61.4% year over year to $144 million due to a slowdown in the Cybersecurity business, offset by healthy performance in the IoT business. Revenues from the Cybersecurity business totaled $85 million, which was down 8.6% year over year. However, it exceeded the company&#39;s revenue guidance of $78-$82 million.</p>
<p>Revenues from the IoT business totaled $53 million, which was up 18% year over year and surpassed the company&#39;s guidance of $48-$52 million.</p>
<p>BB expects fiscal second-quarter revenues to be in the band of $136-$144 million. For the Cybersecurity business, revenues are estimated to be in the range of $82-$86 million. For the IoT business, revenues are estimated to be between $50 million and $54 million for the current quarter.</p>
<p>The stock has lost 48.4% in the past year against the&nbsp;sub-industry&#39;s growth of 20.9%.</p>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/e5/71797.jpg?v=1840866969" /></p>
<p>Image Source: Zacks Investment Research</p>
<h3>Zacks Rank</h3>
<p>BB currently has a Zacks Rank #3 (Hold).</p>
<h3>Stocks to Consider</h3>
<p>NVIDIA Corporation, sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%.</p>
<p>NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company&#39;s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.</p>
<p>Motorola Solutions Inc.&nbsp;provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Motorola carries a Zacks Rank #2 (Buy) at present.</p>
<p>It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.</p>
<p>Silicon Motion Technology Corporation, carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.</p>
<p>SIMO is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.</p>
<p><a href="https://www.zacks.com/stock/news/2304613/blackberry-bb-boosts-software-portfolio-with-qnx-containers?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2304613">To read this article on Zacks.com click here.</a></p>


<p><strong>BlackBerry Limited </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) shares are trading marginally lower in the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39810757/blackberry-introduces-cylancemdr-pro-expansive-platform-ecosystem-powered-by-ai" rel="noreferrer noopener">premarket session on Wednesday</a>.</p>
<p><a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a> says BB stock has slumped over 47% in the past year.</p>
<p>Today, the company announced the launch of CylanceMDR Pro, a cutting-edge managed detection and response (MDR) service <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39810757/blackberry-introduces-cylancemdr-pro-expansive-platform-ecosystem-powered-by-ai" rel="noreferrer noopener">built on an Open XDR platform.</a></p>
<p>CylanceMDR Pro is built to help security teams deal with modern cybersecurity challenges.</p>
<p>&#8220;CylanceMDR Pro is a game-changer for organizations seeking confidence in their cybersecurity posture,&#8221; said&nbsp;Nathan Jenniges, Senior Vice President and General Manager of BlackBerry Cybersecurity.</p>
<p><strong>Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39650933/fubotv-to-bear-the-brunt-of-higher-legal-costs-against-espn-analysts-view" rel="noreferrer noopener">FuboTV To Bear The Brunt Of Higher Legal Costs Against ESPN &#8211; Analyst&#8217;s View</a></strong></p>
<p>BlackBerry said in a press release that it eases the burden of defending against advanced threats with limited resources and talent shortages.</p>
<p>CylanceMDR Pro is for growing businesses aiming to boost cybersecurity quickly without changing current security setup or hiring large teams.</p>
<p>Its advanced XDR system works smoothly with existing tools, giving thorough visibility across IT systems. With 300+ integrations, it turns business data into strong security sensors, catching threats that other tools might overlook.</p>
<p>&#8220;Across the industry, BlackBerry has observed close to a 250% increase in unique attacks per minute in the last year alone, with a continued trend in our latest&nbsp;Global Threat Intelligence Report,&#8221; said Jenniges.&nbsp;</p>
<p><strong>Related: <a href="https://www.benzinga.com/news/earnings/24/06/39514037/blackberry-stock-jumps-on-q1-earnings-beat-the-details" target="_blank" rel="noreferrer noopener">BlackBerry Stock Jumps On Q1 Earnings Beat: The Details</a></strong></p>
<h2 class="wp-block-heading"><strong><span style="text-decoration: underline;">BB Stock Prediction 2024</span></strong></h2>
<p>Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.</p>
<p>Shares of BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) have an average 1-year price target of $3.36, representing an expected upside of 31.25%.</p>
<p>Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on BlackBerry, while No analysts have bullish ratings. The street high price target from Raymond James is $4.75, while the street low from Canaccord Genuity is $2.7.</p>
<p><strong>Price Action: </strong>BB shares are trading lower by 0.77% to $2.550 premarket at last check Wednesday.</p>
<p><strong><em>Disclaimer</em></strong><em>: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em></p>
<p><em>Image: Courtesy of BlackBerry</em></p>
<p><strong>Read Next:</strong></p>
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Blackberry Announced The Launch Of CylanceMDR Pro, A Cutting-edge Managed Detection And Response (mdr) Service Built On An Open Xdr Platform Powered By AI

<p>Raymond James  analyst Steven Li   maintains BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) with a Market Perform and lowers the price target from $5.5 to $4.75.</p>


Price Target

Raymond James Maintains Market Perform on BlackBerry, Lowers Price Target to $4.75

<p><strong>BlackBerry Limited </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bb#NYSE">BB</a>)<strong> </strong>reported first-quarter fiscal 2025 (ended May 31) adjusted loss per share of 3 cents, narrower than the company&#39;s estimate of a loss per share of 4-6 cents.<br />
In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.<br />
Quarterly revenues were $144 million compared with the prior-year quarter&#39;s figure of $373 million. However, the top line surpassed the company&#39;s guidance of $130-$138 million. Software product revenues contributed 85% to total revenues, while professional services contributed 15%.</p>
<div class="chart_embed">
<h3>BlackBerry Limited Price, Consensus and EPS Surprise</h3>
<p><img alt="BlackBerry Limited Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/48/1719488964.png" style="height:265px; width:574px" title="" /></p>
<p>BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote</p>
</div>
<p>The company expects fiscal second-quarter revenues to be in the $136-$144 million range. For the Cybersecurity business, revenues are estimated to be in the band of $82-$86 million.<br />
For the Internet of Things (IoT) business, revenues are expected to be in the range of $50-$54 million for the current quarter. The company&#39;s top line is likely to gain from continued strength in royalties, along with an improvement in development seat license revenues. Licensing &amp; Other revenues are expected to be $4 million.<br />
The company reiterated its fiscal 2025 revenue projection in the band of $586-$616 million. For the Cybersecurity business, revenues are estimated to be in the $350-$365 million range despite weak macroeconomic conditions that continue to elongate sales cycles.<br />
Revenues are estimated to be in the band of $220-$235 million for the IoT business. Management added that challenges faced by automakers in delivering software development programs should remain an overhang on the QNX business.<br />
Licensing &amp; Other revenues are expected to be $16 million.<br />
Following the announcement, the company&#39;s shares have risen 7.7% in the pre-market trading on Jun 27, 2024. The stock has lost 55.9% in the past year compared with the sub-industry&#39;s growth of 29.1%.</p>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/4d/69702.jpg?v=339531374" /><br />
Image Source: Zacks Investment Research</p>
<h3>Quarter in Details</h3>
<p>Revenues from the Cybersecurity business totaled $85 million, which was down 8.6% year over year. However, it exceeded the company&#39;s revenue guidance of $78-$82 million. Revenues were driven by improved annual recurring revenue&nbsp;and strength in the SecuSmart business. Cybersecurity ARR increased 2% sequentially to $285 million.<br />
Revenues from the IoT business totaled $53 million, which was up 18% year over year, and surpassed the company&#39;s guidance. BB had projected IoT revenues in the first quarter to be $48-$52 million. The uptick was attributed to strong revenues from royalties and professional services. Owing to the timing of OEM programs, development seat revenues came in lower than the previous quarter.<br />
Licensing and Other contributed $6 million, which was down from $235 million a year ago. BB projected the segment to deliver revenues of approximately $4 million in the fiscal first quarter.</p>
<h3>Other Details</h3>
<p>Gross profit declined 46.4% from the year-ago quarter to $96 million. Gross margin improved to 66.7% from 48% in the prior-year quarter.<br />
However, non-GAAP gross margin was 67.4% compared with 48.3% on a year-over-year basis.<br />
Total non-GAAP operating expenses were $109 million, which was down 24.8%. Adjusted operating loss was $12 million against an adjusted operating income of $35 million a year ago.<br />
Adjusted EBITDA loss came in at $7 million against an adjusted EBITDA of $41 million in the year-ago quarter. The company had projected adjusted EBITDA loss to be $15-$25 million.</p>
<h3>Cash Flow &amp; Liquidity</h3>
<p>For the quarter that ended on May 31, 2024, BlackBerry used $15 million of net cash in operating activities compared with $99 million cash generated in the prior-year quarter.<br />
As of May 31, BlackBerry had $283 million in cash, cash equivalents, short-term and long-term investments.</p>
<h3>Zacks Rank &amp; Stocks to Consider</h3>
<p>At present, BlackBerry carries a Zacks Rank #3 (Hold).<br />
Some better-ranked stocks worth consideration in the broader technology space are <strong>NVIDIA Corporation</strong>, <strong>Arista Networks</strong>&nbsp;and <strong>Woodward </strong>(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wwd#NASDAQ">WWD</a>), currently sporting a Zacks Rank #1 (Strong Buy) each.<br />
The Zacks Consensus Estimate for NVIDIA&#39;s fiscal 2025 EPS is pegged at $2.68, which increased 12.1% in the past 60 days. NVIDIA&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 18.4%. The long-term earnings growth rate is 37.6%. Shares of NVDA have risen 207.4% in the past year.<br />
The Zacks Consensus Estimate for Arista Network&#39;s 2024 EPS is pegged at $7.92, which increased 5.7% in the past 60 days. The long-term earnings growth rate is 16.1%. ANET&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 15.4%. Shares of ANET have gained 114.7% in the past year.<br />
The Zacks Consensus Estimate for Woodward&#39;s fiscal 2024 EPS has increased 11.6% in the past 60 days to $5.88. WWD&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 26.1%. The long-term earnings growth rate is 16.5%. Shares of WWD have risen 51.2% in the past year.</p>
<p><a href="https://www.zacks.com/stock/news/2294401/blackberry-bb-q1-earnings-beat-estimates-revenues-down-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2294401">To read this article on Zacks.com click here.</a></p>


BlackBerry Q1 Earnings Beat Estimates, Revenues Down Y/Y

<p><strong>RBC Capital Markets </strong>analyst Paul Treiber reiterated the Sector Perform rating on <strong>BlackBerry Limited</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>), <a target="_blank" href="https://www.benzinga.com/quote/BB/analyst-ratings" rel="noreferrer noopener">with a price forecast of $3</a>.</p>
<p>BlackBerry&#8217;s first-quarter revenues of $144 million exceeded estimates, driven by a robust performance in its cybersecurity segment. BlackBerry&#8217;s cybersecurity revenue is expected to range between $82 million and $86 million in the second quarter.</p>
<p><strong><em>Check This Out: </em></strong><em><a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39520026/why-blackberry-shares-are-gaining-thursday" rel="noreferrer noopener">Why BlackBerry Shares Are Gaining Thursday</a></em></p>
<p>According to the analyst, visibility to near-term profitability is improving, and BlackBerry plans to provide segmented financials in October.</p>
<p>Near-term stabilization of BlackBerry&#8217;s business and profitability may help lift valuation from trough levels, Treiber writes.</p>
<p>BlackBerry announced another $20 million of cost savings, which brings total annual savings to $125 million of the company&#8217;s $150 million target. Given the time to realize savings, the analysts note that the cuts are more likely to impact FY26.</p>
<p>Treiber raised FY26 adj. EBITDA estimates from $34 million to $41 million. The company also announced that it will provide fully segmented financials at its investor day in October.</p>
<p>However, the analyst cautioned that the company operates in markets with significant competition.</p>
<p>Per the analyst, a material re-rating in the stock is likely to be dependent on sustained profitability and growth, along with other potential value-creation strategies (e.g. sale/spin-out of Cyber).</p>
<p>The analyst lowered the FY25 revenue estimate to $600.2 million from $600.4 million.</p>
<p><strong>Price Action: </strong>BB shares are trading higher by 9.28% to $2.415 at last check Thursday.</p>
<p><strong><em>Read Next:</em></strong><em> <a href="https://www.benzinga.com/markets/equities/24/06/39511884/nios-upcoming-onvo-l60-reportedly-shows-striking-similarities-to-tesla-models-in-spy-shots" target="_blank" rel="noreferrer noopener">NIO&#8217;s Upcoming Onvo L60 Reportedly Shows Striking Similarities To Tesla Models In Spy Shots</a></em></p>
<p><em>Courtesy of BlackBerry</em></p>


Analyst Color

Reiteration

Blackberry's Visibility To Near-term Profitability Is Starting To Improve - Analyst Eyes Value-creation Strategies

<p>RBC Capital  analyst Paul Treiber   reiterates BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) with a Sector Perform and maintains $3 price target.</p>


TSX:BB

RBC Capital Reiterates Sector Perform on BlackBerry, Maintains $3 Price Target

<p>Canaccord Genuity  analyst Kingsley Crane   maintains BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) with a Hold and lowers the price target from $3.25 to $2.7.</p>


Canaccord Genuity Maintains Hold on BlackBerry, Lowers Price Target to $2.7

<ul>
<li>NVDA</li>
<li>MU</li>
<li>TSLA</li>
<li>HIMS</li>
<li>BB</li>
<li>AI</li>
<li>RIVN</li>
<li>AAPL</li>
<li>WAY</li>
<li>WBA</li>
</ul>
<p>Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a></p>
<p>&nbsp;</p>


AAPL

Hims & Hers Health, Inc. Class A Common Stock

HIMS

NVDA

RIVN

TSLA

Top 10 Trending Stocks On WallStreetBets As Of June 27 2024 (Via Swaggy Stocks)

<p>CIBC  analyst Todd Coupland   upgrades BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) from Neutral to Outperformer.</p>


Upgrades

CIBC Upgrades BlackBerry to Outperformer

<p>Baird  analyst Luke Junk   maintains BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) with a Neutral and lowers the price target from $3.5 to $3.</p>


Baird Maintains Neutral on BlackBerry, Lowers Price Target to $3

WIIM

BlackBerry shares are trading higher after the company reported better-than-expected Q1 financial results.

<p><strong>BlackBerry Limited </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) shares are trading higher in the <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">premarket session on Thursday.</a></p>
<p>Yesterday, after the closing bell, the company reported first-quarter revenues of $144 million, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">which beat&nbsp;estimates of $134.052 million.</a></p>
<p>In the quarter under review, the company&#8217;s Cybersecurity segment exceeded previously provided guidance at&nbsp;$85 million, with a gross margin of 59%.</p>
<p><strong><em>Check This Out: </em></strong><em><a target="_blank" href="https://www.benzinga.com/news/earnings/24/06/39514037/blackberry-stock-jumps-on-q1-earnings-beat-the-details" rel="noreferrer noopener">BlackBerry Stock Jumps On Q1 Earnings Beat: The Details</a></em></p>
<p>Recently, several companies, including CDK, a technology provider for the car industry, <strong>UnitedHealth Group&#8217;s</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) Change Healthcare unit, and <strong>Live Nation Entertainment, Inc.&#8217;s</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>) Ticketmaster unit, have experienced significant data breaches.</p>
<p>Despite a broader decline in tech spending, prominent cyberattacks are compelling companies and government agencies to increase their investments in cybersecurity, Reuters reported.</p>
<p>This heightened focus on protecting data from hackers and malware is driving up demand for cybersecurity firms like BlackBerry, the report added.</p>
<p>Cybersecurity ARR increased by 2% sequentially to&nbsp;$285 million; DBNRR increased sequentially for the third consecutive quarter to 87%, the company said.</p>
<p>In the second quarter, the company expects cybersecurity revenue between $82 million and $86 million. For fiscal year 2025, the company sees cybersecurity revenue of $350 million- $365 million.</p>
<p>Apart from this, Blackberry&#8217;s IoT segment achieved 18% year-over-year revenue growth in the first quarter.  IoT revenue is expected to be between $50 million and $54 million in the second quarter, and $220 million to $235 million in fiscal year 2025.</p>
<p>The tech giant reported a first-quarter loss of 3 cents, beating the estimates for a 4 cents loss. It maintained its full-year 2025 revenue and profit forecast.</p>
<p>In a separate&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39473093/blackberry-reports-40-percent-increase-in-new-malware-used-in-cyberattacks" rel="noreferrer noopener">press release</a>, the company said BlackBerry cybersecurity solutions detected and stopped 3.1 million cyberattacks (37,000 per day) in the first quarter of 2024. Between January and March 2024, BlackBerry detected 630,000 malicious hashes, representing a 40% increase from its previous reporting period.</p>
<p><strong>Price Action:</strong> BB shares are trading higher by 3.62% to $2.30 premarket at last check Thursday.</p>
<p><strong><em>Read Next: </em></strong><em><a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/06/39513292/feds-preferred-inflation-gauge-set-to-drop-to-38-month-low-this-could-provide-the" rel="noreferrer noopener">Fed&#8217;s Preferred Inflation Gauge Set To Drop To 38-Month Low: &#8216;This Could Provide The Impetus For Another Rally To Fresh Highs&#8217;</a></em></p>


Why BlackBerry Shares Are Gaining Thursday

<p>Major U.S. indices closed positively, with the Dow Jones Industrial Average edging up by 0.04% to 39,127.80, and the S&amp;P 500 rising nearly 0.2% to 5,477.90. The Nasdaq also finished Wednesday&#8217;s regular session higher, gaining almost 0.5% to reach 17,805.16.</p>
<p>These are the top stocks that gained the attention of retail traders and investors throughout the day:</p>
<p><strong>Micron Technology Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) closed the day with a 0.88% increase at $142.36. The stock&#8217;s intraday high was $144.07, with a low of $139.54. Micron&#8217;s 52-week high and low stand at $157.54 and $60.5, respectively. The company reported <a href="https://www.benzinga.com/news/earnings/24/06/39512382/micron-q3-earnings-revenue-beat-eps-beat-q4-earnings-guidance-expanding-ai-driven-opportunities-ahe">strong third-quarter results</a>, exceeding analyst estimates on both revenue and earnings per share.</p>
<p><strong>Amazon.com Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) saw a 3.90% increase, closing at $193.61. The e-commerce giant&#8217;s stock hit a new all-time high of $194.8 today, with a low of $186.26. Its 52-week high and low are $194.8 and $118.35, respectively. The stock&#8217;s surge followed a price target increase from BofA Securities. The company <a href="https://www.benzinga.com/news/24/06/39509886/amazon-stock-is-hitting-new-all-time-highs-wednesday-whats-going-on">broke through the $2 trillion market cap level</a> on the same day. </p>
<p><em>See Also: <a href="https://www.benzinga.com/news/earnings/24/06/39453063/nasdaq-futures-slip-as-nvidia-sell-off-continues-s-p-500-futures-hold-up-analyst-says-valuations-wi?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nasdaq Futures Slip As Nvidia Sell-Off Continues, S&amp;P 500 Futures Hold Up: Analyst Says &#8216;Valuations Will</a></em></p>
<p><strong>BlackBerry Ltd</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) ended the day down 1.34% at $2.21. The stock&#8217;s intraday high and low were $2.25 and $2.2, respectively, with a 52-week range of $5.75 to $2.2. Notably, BlackBerry shares shot up 8.1% in the after-hours trading to $2.39. The company reported a <a href="https://www.benzinga.com/news/earnings/24/06/39514037/blackberry-stock-jumps-on-q1-earnings-beat-the-details">fiscal first-quarter earnings beat</a>. </p>
<p><strong>Nike Inc</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) closed down 0.73% at $94.06. The stock&#8217;s intraday high and low were $94.48 and $93.15, respectively, with a 52-week range of $123.39 to $88.66. The company is set to report its fourth-quarter earnings tomorrow. <a href="https://www.benzinga.com/trading-ideas/technicals/24/06/39507562/nike-stock-struggles-ahead-of-q4-earnings-can-it-just-do-it-and-overcome-bearish-trend">Here&#8217;s what the charts indicate</a>.</p>
<p><strong>Tesla Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) saw a 4.81% increase, closing at $196.37. The electric vehicle maker&#8217;s stock hit an intraday high of $197.76 and a low of $186.36. Its 52-week high and low are $299.29 and $138.8, respectively. The stock&#8217;s rise <a href="https://www.benzinga.com/news/24/06/39505959/why-tesla-stock-is-trading-higher-wednesday-very-well-positioned-to-deliver-robust-multi-year-growth">followed a bullish analyst initiation</a> from <strong>Stifel</strong>. Analyst Stephen Gengaro initiated coverage on the EV maker with a &#8220;Buy&#8221; rating and set a price target of $265. </p>
<p><em>Photo by Jirapong Manustrong on Shutterstock</em></p>
<p><em>Prepare for the day&#8217;s trading <a href=""Premarket">with top premarket movers and news</a> by Benzinga.</em></p>
<p><em>Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39470296/nvidia-affirm-holdings-carnival-corp-alnylam-pharmaceuticals-tesla-why-these-5-stocks-are-on-inv?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">NVDA, AFRM, CCL, ALNY, TSLA: Top 5 Trending Stocks Today</a></em></p>
<p>This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <u><a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a></u></p>


AMZN

Micron Technology, Amazon, BlackBerry, Nike, Tesla: Why These 5 Stocks Are On Investors' Radars Today

<p><strong>BlackBerry Ltd</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) reported fiscal first-quarter financial results after the market close on Wednesday. Here&#8217;s a look at the <a href="https://www.benzinga.com/pressreleases/24/06/n39513575/blackberry-reports-first-quarter-fiscal-year-2025-results">key metrics from the quarter</a>.</p>
<ul>
<li><strong>Q1 Revenue:</strong> $144 million, beat <a href="https://www.benzinga.com/calendars/earnings">estimates</a> of $134.052 million</li>
</ul>
<ul>
<li><strong>Q1 EPS:</strong> loss of 3 cents, beat estimates for loss of 4 cents</li>
</ul>
<p>IoT revenue was&nbsp;$53&nbsp;million, up 18% year-over-year.&nbsp;Cybersecurity revenue totaled $85&nbsp;million in the quarter and&nbsp;licensing and other revenue&nbsp;came in at $6&nbsp;million. BlackBerry ended the quarter with $283 million in&nbsp;cash, cash equivalents and&nbsp;short-&nbsp;and long-term investments.</p>
<p>&#8220;BlackBerry&#8217;s strategy is delivering results. The Company is making significant progress towards operational independence for our IoT and Cybersecurity businesses, as well as towards profitability,&#8221; said&nbsp;<strong>John Giamatteo</strong>, CEO of BlackBerry.&nbsp;</p>
<p>&#8220;We exceeded our&nbsp;outlook&nbsp;range for both adjusted EBITDA and non-GAAP EPS this quarter and achieved a third consecutive sequential improvement in free cash usage. BlackBerry remains on track to be both profitable on a non-GAAP basis and generating positive cashflow in the&nbsp;fourth quarter.&#8221; </p>
<p><strong>Guidance:</strong> BlackBerry expects fiscal second-quarter revenue to be between $136 million and $144 million. IoT revenue is expected to be between $50 million and $54 million, cybersecurity revenue is expected to be between $82 million and $86 million and licensing and other revenue is expected to total approximately $4 million. The company guided for a second-quarter loss of 2 cents to 4 cents per share.</p>
<p>BlackBerry anticipates full-year revenue of $586 million to $616 million. The company anticipates a full-year adjusted earnings loss of 3 cents to 7 cents per share.</p>
<p><strong>Management will hold a conference call to discuss these results at 5:30 p.m. ET.</strong></p>
<p><strong>BB Price Action:&nbsp;</strong><a href="https://www.benzinga.com/quote/BB" target="_blank" rel="noreferrer noopener">BlackBerry shares</a>&nbsp;were up 7.69% after hours at $2.38 at the time of publication, according to&nbsp;<a href="https://benzinga.grsm.io/gxjhpowx7zks" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.</p>
<p><strong>Read Next:<br />     • <a href="https://www.benzinga.com/news/earnings/24/06/39512382/micron-q3-earnings-revenue-beat-eps-beat-q4-earnings-guidance-expanding-ai-driven-opportunities-ahe">Micron Q3 Earnings: Revenue Beat, EPS Beat, Q4 Earnings Guidance, &#8216;Expanding AI-Driven Opportunities Ahead&#8217; And More</a></strong></p>
<p><em>Photo: Courtesy of BlackBerry.</em></p>


After-Hours Center

BlackBerry Stock Jumps On Q1 Earnings Beat: The Details

BlackBerry Says It Remains On Track To Be Both Profitable On Non-GAAP Basis And Generating Positive Cashflow In Q4

BlackBerry Expects FY25 Revenue Of $586M – $616M, Est $600.973M; Adj EPS $(0.03) – $(0.07), Est $(0.04)

BlackBerry Expects Q2 Revenue Of $136M – $144M, Est $142.415M; Adj EPS $(0.02) – $(0.04), Est $(0.02)

<p>BlackBerry (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) reported quarterly losses of $(0.03) per share which beat the analyst consensus estimate of $(0.04) by 25 percent. This is a 150 percent decrease over earnings of $0.06 per share from the same period last year.  The company reported quarterly sales of $144.000 million which beat the analyst consensus estimate of $134.052 million by 7.42 percent.  This is a 61.39 percent decrease over sales of $373.000 million the same period last year.</p>


BlackBerry Q1 2025 Adj EPS $(0.03) Beats $(0.04) Estimate, Sales $144.000M Beat $134.052M Estimate

Catalyst Watch: Tesla deliveries, Constellation Brands earnings, and the June Jobs Report

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>While it is true that <a href="https://investorplace.com/industries/technology/">technology stocks</a> are leading the market higher, not every tech stock is a winner. As the <strong>Nasdaq</strong> index continues to hit record highs, many of its components are <a href="https://www.morningstar.ca/ca/news/245631/time-to-sell-your-tech-stocks.aspx">slumping badly</a> and underperforming. The reality is that for every winner like <strong>Nvidia </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/nvda-stock-quote/"><strong>NVDA</strong></a></span>) stock, there are dozens of losers dragging down investor portfolios.</p>



<p>The situation seems to have <a href="https://www.marketwatch.com/story/tech-stocks-likely-headed-for-a-pullback-these-5-charts-show-their-momentum-is-starting-to-fade-6b550d51">gotten worse</a> following a string of recent earnings reports by tech companies. Shares of several notable names are sliding lower after reporting big earnings misses or delivering disappointing guidance. For investors, these have become <a href="https://www.investopedia.com/articles/stocks/10/when-to-sell-stocks.asp">tech stocks to avoid</a>. Anyone holding onto these troubled names should sell ASAP.</p>



<p>Let&rsquo;s examine three such tech stocks that may tumble even further.</p>



<h2>BlackBerry (BB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/bb1600-300x169.png" alt="BlackBerry Limited logo. Company was originally known as Research In Motion (RIM), a Canadian software company specializing in cybersecurity.. BB stock"><div>Source: Poetra.RH / Shutterstock.com</div></div><p>Things are going from bad to worse at technology company <strong>BlackBerry</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/bb-stock-quote/"><strong>BB</strong></a></span>). The former smartphone maker turned cybersecurity play just reported that its net loss in this year&rsquo;s first quarter <a href="https://www.baystreet.ca/techinsider/4377/BlackBerrys-Net-Loss-Widens-By-Nearly-300-As-Sales-Plummet">grew by nearly 300%</a>. BlackBerry posted a Q1 net loss of $42 million. That&rsquo;s 282% greater than a net loss of $11 million recorded a year earlier. The latest result amounted to a loss of 7 cents a share compared to a loss of 2 cents the previous year.</p>



<p>The <a href="https://financialpost.com/technology/blackberry-reports-us42-million-net-loss-q1">widening loss</a> comes as sales at BlackBerry continue to deteriorate. In Q1, the company&rsquo;s revenue totaled $144 million, down 61% from $373 million a year earlier. The bad print comes as BlackBerry prepares to divide its cybersecurity business and its IoT division. Also, the company is cutting costs as its financial situation deteriorates. Earlier this year, BlackBerry eliminated 200 jobs and closed six of its 36 global offices.</p>



<p>Unfortunately, BlackBerry&rsquo;s <a href="https://www.cantechletter.com/2024/06/td-lowers-price-target-on-blackberry-after-q1-results/#">shares have declined 50%</a> over the past 12 months and currently trade as a penny stock.</p>



<h2>Riot Platforms (RIOT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/07/riot1600-300x169.png" alt="In this photo illustration, the Riot Platforms (RIOT) logo is displayed on a smartphone screen."><div>Source:  rafapress / Shutterstock.com</div></div><p>A selloff in <strong>Riot Platforms </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/riot-stock-quote/"><strong>RIOT</strong></a></span>) is accelerating after the <strong>Bitcoin </strong>(<span><a href="https://investorplace.com/cryptocurrency/btc-usd/"><strong>BTC-USD</strong></a></span>) miner announced that it is <a href="https://www.coindesk.com/business/2024/06/24/bitcoin-miner-riot-platforms-ditches-bitfarms-takeover-bid-seeks-to-overhaul-board/">abandoning its pursuit</a> of rival <strong>Bitfarms </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/bitf-stock-quote/"><strong>BITF</strong></a></span>). </p>



<p>Riot Platforms said it is giving up its proposed takeover of Bitfarms after its latest offer was rejected by the company. RIOT management has said that they want to acquire Bitfarms to create the world&rsquo;s largest publicly traded Bitcoin miner.</p>



<p>Further, consolidation within the crypto mining sector has ramped up after Bitcoin underwent a halving event this April. That is the time that the available supply of BTC, and the rewards for mining it, are reduced by 50%. Riot Platforms is now engaging in a <a href="https://www.reuters.com/technology/riot-platforms-withdraws-offer-rival-bitfarms-seeks-three-board-seats-2024-06-24/">boardroom battle</a> with Bitfarms, having nominated three people to replace current Bitfarms board members. Specifically, the company can propose new board members since it is Bitfarms&rsquo; largest shareholder with a 15% ownership stake in the company.</p>



<p>So, executives at Riot Platforms had previously called for the removal Bitfarms&rsquo; interim Chief Executive Officer (<strong>CEO</strong>) Nicolas Bonta. Where the battle goes from here is unclear. But the entire situation is weighing on RIOT stock, which is down 41% on the year and sinking.</p>



<h2>Micron Technology (MU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/mu_micron_1600-300x169.png" alt="An outside image of a Micron Technology, Inc. headquarters. MU stock. momentum stocks to buy soon"><div>Source: Charles Knowles / Shutterstock.com</div></div><p>The shine is off <strong>Micron Technology </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/mu-stock-quote/"><strong>MU</strong></a></span>) after the data storage company reported forward guidance that was in line with Wall Street forecasts. Despite beating Q1 estimates on the top and bottom lines with its latest earnings, investors appear disappointed. <a href="https://www.cnbc.com/2024/06/26/micron-shares-slide-after-revenue-forecast-fails-to-top-estimates.html">Micron&rsquo;s revenue forecast</a> matched, rather than topped, analyst expectations. MU stock fell 7% the day after its print.</p>



<p>True, Micron Technology is benefitting from the current boom in artificial intelligence (<strong>AI</strong>). Its advanced memory is used with graphics processing units (<strong>GPU</strong>s) made by companies such as Nvidia. However, while MU&rsquo;s AI business is thriving, the company said in its earnings statement that its smartphone and personal computer (<strong>PC</strong>) units are struggling with <a href="https://www.barrons.com/articles/micron-technology-earnings-stock-price-bd284ea3">weak global demand</a>.</p>



<p>Micron Technology, which manufacturers computer memory and data storage products, said it expects EPS of $1.08 on revenue of $7.6 billion for the current second quarter of the calendar year. Analysts on Wall Street had been looking for earnings of $1.05 on revenue of $7.6 billion. The <a href="https://www.barrons.com/articles/why-micron-nvidia-stock-price-falling-6ff3a5a9">post-earnings fall in MU stock</a> comes after the share price doubled in the last year.</p>



<p><em>On the date of publication, Joel Baglole&nbsp;held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Finvestorplace.com%2Fcorporate%2Finvestorplace-publishing-guidelines%2F&amp;data=04%7C01%7C%7C5a525d9084ae4cdfb8f008da1edbf06e%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637856227247256778%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&amp;sdata=uLFH3ol2mcVxuJrHYW3xDLVx3qGIvonIwHvcfUa%2Fo24%3D&amp;reserved=0">Publishing Guidelines</a>.</em></p>
<div><p>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</p></div><h3>More From InvestorPlace</h3>
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						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT766411">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
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						<a href="https://investorplace.com/2024/04/legendary-investor-predicts-forget-a-i-this-technology-is-the-future/?cid=MKT794457&amp;eid=MKT802109">Legendary Investor Predicts: &ldquo;Forget A.I. THIS Technology Is the Future&rdquo;</a>
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<p>The post <a href="https://investorplace.com/2024/06/tech-stock-tumble-ahead-3-companies-to-dump-now/">Tech Stock Tumble Ahead: 3 Companies to Dump Now!</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Tech Stock Tumble Ahead: 3 Companies to Dump Now!

Notable analyst calls this week: Nike, Micron and FedEx among top picks

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><a href="https://investorplace.com/stock-types/meme-stocks/">Meme stocks</a> are some of the most dangerous investments to make right now. In my view, now may be a good time to sell many top meme stocks that have gone on big runs. Of course, investors can always put some &ldquo;fun money&rdquo; into these stocks as high-risk gambles. However, I would not recommend chasing the current meme stock rally. Most meme stocks have legacy underlying businesses that are bleeding cash and have negative growth. These companies are unlikely to provide long-term returns. In fact, they&rsquo;re more likely to dilute investors toward oblivion.</p>



<p>The recent roaring kitty-led hype cycle around many meme stocks has led to a sharp rally over the past few months. Some stocks have seen incredible gains, so I think it is the perfect time to trim positions, for those holding these names. Of course, the hype could continue. But I think most of the hype is likely dead, and will continue to die down in the coming months.</p>



<h2>GameStop (GME)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/06/gme1600-4-300x169.png" alt="GameStop logo on the smartphone screen and blurred background. GME stock"><div>Source: mundissima / Shutterstock.com</div></div><p><strong>GameStop</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/gme-stock-quote/"><strong>GME</strong></a>) operates a chain of video game and entertainment stores. The company&rsquo;s latest earnings release paints a grim picture for this meme stock darling. I&rsquo;ve been skeptical about the GameStop craze since its inception. Speculators, flush with stimulus checks back in 2021 (and the likes of Roaring Kitty and others prompting speculators to consider certain stocks) led to unsustainable valuations which proved to be too good to be true.</p>



<p>Yes, GME stock is up an eye-popping 130% since the start of May, but it still hasn&rsquo;t managed to overtake its previous high due to excessive share dilution. While the retail trading frenzy has allowed GameStop to raise a boatload of cash, I believe now is the perfect time to take profits and run for the hills.</p>



<p>GameStop&rsquo;s financials are simply too poor to justify its premium. The company is also closing many more stores than it is opening.</p>



<div><a href="https://investorplace.com/wp-content/uploads/2024/06/chart-2024-06-28t175856.197.png"><img width="1026" height="651" src="https://investorplace.com/wp-content/uploads/2024/06/chart-2024-06-28t175856.197.png" alt="Meme stocks to sell: GME stores opened/closed"><br>Click to Enlarge</a><div>Source: Chart courtesy of <a href="https://GuruFocus.com">GuruFocus.com</a></div></div><p>Net sales <a href="https://www.cnbc.com/2024/06/07/gamestop-gme-q1-earnings.html" target="_blank">plunged from $1.237 billion in Q1 2023</a> to a mere $882 million in Q1 2024. The company also remains deeply unprofitable, posting a net loss of $32.3 million on this revenue. Trading at an absurd 2.5-times forward sales, GameStop&rsquo;s valuation is completely detached from reality, given its lack of growth and widening losses. The cash raised from the meme stock rally may provide some temporary relief. But throwing money at a sinking ship is never a wise investment strategy. Further pumps will also likely be met with even more dilution. As such, I think it is one of the top meme stocks to sell right now.</p>



<h2>AMC Entertainment (AMC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/05/amc1600-7-300x169.png" alt="The logo for AMC Entertainment Holdings Inc (AMC) is displayed above a movie theater entrance."><div>Source: MNAphotography / Shutterstock.com</div></div><p><strong>AMC Entertainment</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/amc-stock-quote/"><strong>AMC</strong></a>) is a massive movie theater chain operator, with a significant following. However, I believe this legacy business model is destined for decline. In its first quarter, AMC managed to broadly maintain revenues despite a <a href="https://finance.yahoo.com/news/amc-entertainment-holdings-inc-amc-075956539.html#:~:text=The%20first%20quarter's%20North%20American,reflecting%20the%20broader%20industry%20downturn." target="_blank">drop in box office sales</a>. However, I don&rsquo;t see this as a sustainable trend, given the relentless rise of streaming competitors.</p>



<p>The pandemic has accelerated shifts in consumer behavior, with younger generations heavily favoring online entertainment options. Some studios are already experimenting with simultaneous streaming and theatrical releases. This could rapidly erode the viability of cinemas if it becomes the norm.</p>



<p>AMC has improved its efficiency, though. Plus, higher per-patron revenues are commendable. That said, I view these tailwinds negatively, as I think they&rsquo;re just prolonging the inevitable. The company may survive in the near term as interest rates stabilize. But I believe AMC has very limited long-term growth potential in the face of digital disruption.</p>



<p>As streaming services become ever more dominant, physical movie-going will likely continue to dwindle. In my view, AMC is another meme stock that investors should consider selling before this small ongoing pump turns into a painful dump.</p>



<h2>BlackBerry (BB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/bb1600-300x169.png" alt="BlackBerry Limited logo. Company was originally known as Research In Motion (RIM), a Canadian software company specializing in cybersecurity.. BB stock"><div>Source: Poetra.RH / Shutterstock.com</div></div><p><strong>BlackBerry</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/bb-stock-quote/"><strong>BB</strong></a>) provides cybersecurity solutions and Internet of Things (IoT) software. Indeed, while the days of BBM and &ldquo;CrackBerries&rdquo; are long gone, the company recently delivered a solid revenue beat this quarter, with both its IoT and cybersecurity divisions exceeding expectations. However, I believe this momentary uptick is unlikely to lead to a genuine turnaround for the struggling legacy tech player.</p>



<p>While BlackBerry achieved its third straight quarter of improved cash flow and narrowed losses, the bar was set exceedingly low, given the company&rsquo;s multi-year decline. BlackBerry&rsquo;s<a href="https://www.marketwatch.com/story/blackberry-posts-smaller-loss-than-expected-as-it-marches-toward-profitability-051c3bbd" target="_blank"> $144 million in revenue</a> still represents a staggering 61.4% plunge compared to the prior year. I&rsquo;m not convinced that eking out a modest revenue beat against the backdrop of such a dramatic collapse should be cheered.</p>



<p>CEO John Giamatteo <a href="https://financialpost.com/technology/blackberry-reports-us42-million-net-loss-q1#:~:text=Giamatteo%20said%20he%20considered%20the,back%20and%20relax%20just%20yet.">claims</a> BlackBerry&rsquo;s strategy is working, but where&rsquo;s the proof? The company continues to bleed red ink with a 3 cent per share loss, and its vaunted IoT business saw a sequential drop in development seat revenue. Unless BlackBerry stems its chronic customer attrition and returns to profitability soon, this meme-propelled dead cat bounce will likely end in tears for retail bulls. In my view, BB stock is definitely one of the top meme stocks to sell right now.</p>



<p><em>On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines.</a></em></p>
<div><p>Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on <a href="https://www.linkedin.com/in/omor-ibne-ehsan-56068022b/">LinkedIn</a>.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/06/from-pump-to-dump-3-meme-stocks-headed-for-a-massive-crash/">From Pump to Dump: 3 Meme Stocks Headed for a Massive Crash</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

From Pump to Dump: 3 Meme Stocks Headed for a Massive Crash

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>The stock market might be near all-time highs, but it&rsquo;s not champagne and caviar for every company or their shareholders. Many stocks are deep in the red this year despite the gains seen across the indices. This is especially true of <a href="https://investorplace.com/industries/technology/">technology stocks</a>. While familiar mega-cap names such as <strong>Meta Platforms </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/meta-stock-quote/"><strong>META</strong></a></span>) are trending higher, a lot of <a href="https://www.raymondjames.com/westpalmbeach-branch/commentary-and-insights/2024/07/01/mega-cap-tech-stocks-continue-to-lead-the-way">smaller tech stocks are struggling</a> in this market.</p>



<p>Some tech stocks are floundering due to self-inflicted wounds and poor financial results. However, issues ranging from high interest rates and geopolitical conflicts to poor analyst ratings and negative investors sentiment are also weighing on share prices and <a href="https://www.morganstanley.com/ideas/magnificent-7-stocks-portfolio-risk">hurting stocks</a>. The good news for investors is that many technology stocks are now available at bargain basement prices, presenting opportunities to go bottom fishing.</p>



<p>So, let&rsquo;s delve into this tech sector fire sale of three must-buy stocks at multi-year lows.</p>



<h2>Paramount Global (PARA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/para1600-300x169.png" alt="In this photo illustration, the Paramount Global (PARA) logo is displayed on a smartphone screen"><div>Source: rafapress / Shutterstock.com</div></div><p>It looks like there might <a href="https://www.cnbc.com/2024/07/02/paramount-shares-pop-9percent-on-news-of-preliminary-skydance-media-deal.html">finally be a deal</a> that will see privately held production company <strong>Skydance Media</strong> acquire streaming giant <strong>Paramount Global </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/para-stock-quote/"><strong>PARA</strong></a></span>). Media reports murmur that Skydance Media is expected to pay $1.75 billion for National Amusements, the parent company of Paramount Global, and then merge the two entertainment concerns. That news sent PARA stock up 7%.</p>



<p>While Paramount stock has gotten a boost, its share price is still down 20% year-to-date (<strong>YTD</strong>). The long-term losses for Paramount Global&rsquo;s stock are even greater. The company&rsquo;s share price today is trading 78% lower than five years ago. Management is trying to right the ship beyond the potential deal with Skydance Media. They are exploring streaming joint ventures with other media companies. And, they may be <a href="https://www.hollywoodreporter.com/business/business-news/paramount-town-hall-cost-cuts-1235931990/">eliminating $500 million in costs</a> and divesting noncore assets. Also, paying down $15 billion in long-term debt is a top priority.</p>



<p>While not without risk, PARA stock could be a good purchase for bargain hunters. This holds particularly true as the company remains in play as an acquisition target.</p>



<h2>Shopify (SHOP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/shop_shopify1600-300x169.png" alt="Shopify (SHOP) on the phone display."><div>Source: Burdun Iliya / Shutterstock.com</div></div><p>E-commerce company <strong>Shopify </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/shop-stock-quote/"><strong>SHOP</strong></a></span>) is another potential buy. Its stock is down 11% this year and 62% below the all-time high from November 2021 of the pandemic rally peak. More recently, SHOP stock fell nearly 20% after the company reported <a href="https://www.baystreet.ca/techinsider/4262/Shopifys-Stock-Plunges-18-On-Surprise-Loss">a surprise loss</a> for its fiscal first quarter. Shopify announced a loss of 21 cents per share. This was far worse than the 9 cent profit that analysts expected.</p>



<p>The financial loss in fiscal Q1 was blamed on the sale of Shopify&rsquo;s logistics business and related fees that the company incurred on the sale. Looking ahead, Shopify said that for fiscal Q2, revenue will grow at a high-teens percentage rate year-over-year (<strong>YOY</strong>). Analysts had forecast a Q2 sales increase of 19%. In late June, Shopify also announced it is teaming up with discount retailer <strong>Target </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/tgt-stock-quote/"><strong>TGT</strong></a></span>) on a <a href="https://baystreet.ca/stockstowatch/18317/Target-And-Shopify-Join-Forces-On-Third-Party-Marketplace">third-party online marketplace</a>.</p>



<p>Companies that work with Shopify can now apply to join &ldquo;Target Plus,&rdquo; the retailer&rsquo;s third-party marketplace. The <a href="https://www.cnbc.com/2024/06/24/target-taps-shopify-to-add-sellers-to-its-third-party-marketplace.html">arrangement with Target</a> gives Shopify&rsquo;s customers a larger consumer base to draw on. For Target, the deal adds new and diverse products and brands to its online marketplace. Financial terms of the arrangement are not yet disclosed.</p>



<h2>BlackBerry (BB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/bb1600-300x169.png" alt="BlackBerry Limited logo. Company was originally known as Research In Motion (RIM), a Canadian software company specializing in cybersecurity.. BB stock"><div>Source: Poetra.RH / Shutterstock.com</div></div><p>Investors really looking to bottom fish a hard luck technology stock should consider <strong>BlackBerry</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/bb-stock-quote/"><strong>BB</strong></a></span>). The former smartphone maker turned IoT company has seen its <a href="https://www.morningstar.ca/ca/news/243627/why-is-blackberry-stock-so-cheap.aspx">share price drop 53%</a> in the last 12 months. This was due to a string of poor earnings reports.</p>



<p>BB stock is 98% lower than its all-time high reached in 2008 when it was still making handheld devices. At less than $2.50 per share, BlackBerry now trades as a penny stock. Most recently, BlackBerry reported its <a href="https://baystreet.ca/techinsider/4377/BlackBerrys-Net-Loss-Widens-By-Nearly-300-As-Sales-Plummet">net loss</a> in this year&rsquo;s Q1 grew by nearly 300% as sales continue to deteriorate. Revenue declined 61% from a year earlier. BlackBerry is preparing to divide its cybersecurity and IoT divisions to cut costs.</p>



<p>While not for investors with weak stomachs, BB stock could rise if management can get the company&rsquo;s house in order. Additionally, BlackBerry has become <a href="https://www.cbsnews.com/news/amc-blackberry-gamestop-meme-stocks-roaring-kitty-wallstreetbets/">a popular meme stock</a>. So, its share price is prone to popping whenever that basket of securities rises.</p>



<p><strong><em>On <a href="https://investorplace.com/stock-types/penny-stocks/">Penny Stocks</a> and Low-Volume Stocks:</em></strong><em>&nbsp;With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That&rsquo;s because these &ldquo;penny stocks&rdquo; are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that&nbsp;</em><a href="http://investorplace.com/"><em>InvestorPlace.com</em></a><em>&rsquo;s writers disclose this fact and warn readers of the risks.</em></p>



<p><em>Read More:&nbsp;Penny Stocks &mdash;&nbsp;</em><a href="https://investorplace.com/2014/05/fraud-penny-stocks-scams/"><em>How to Profit Without Getting Scammed</em></a></p>



<p><em>On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Finvestorplace.com%2Fcorporate%2Finvestorplace-publishing-guidelines%2F&amp;data=04%7C01%7C%7C5a525d9084ae4cdfb8f008da1edbf06e%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637856227247256778%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&amp;sdata=uLFH3ol2mcVxuJrHYW3xDLVx3qGIvonIwHvcfUa%2Fo24%3D&amp;reserved=0">Publishing Guidelines</a>.</em></p>



<p><em>On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.</em></p>
<div><p>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/07/tech-sector-fire-sale-3-must-buy-stocks-at-multi-year-lows/">Tech Sector Fire Sale: 3 Must-Buy Stocks at Multi-Year Lows</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Tech Sector Fire Sale: 3 Must-Buy Stocks at Multi-Year Lows

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><a href="https://investorplace.com/stock-types/meme-stocks/">Meme stocks</a> to sell continue sounding the alarm bells this year.</p>



<p>However, this year&rsquo;s explosiveness in meme stocks is notably subdued compared to the original retail trading frenzy. Hence, the stock market seems to have evolved, and smart money is now approaching these stocks with greater caution and strategy.</p>



<p>Moreover, <a href="https://finance.yahoo.com/news/why-the-2024-meme-stock-action-is-much-tamer-than-2021--so-far-100419853.html">according to Vanda Research</a>, inflows into meme stocks are substantially lower compared to 2021, pointing to a steep decline in speculative interest. Also, most meme stock companies are struggling fundamentally and will continue burning investor value for the foreseeable future. Therefore, investors tempted by past gains should consider the risks involved with long-term financial erosion.</p>



<p>Keeping that in mind, here are three lackluster meme stocks to sell. They offer little upside potential, and their dreary underlying businesses and dim prospects make it best to steer clear of them now.</p>



<h2>AMC Entertainment (AMC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/amc1600-1-300x169.png" alt="In this photo illustration the stock market information of AMC Entertainment Holdings, Inc. displays on a smartphone while the logo of AMC Entertainment Holdings, Inc. APE stock"><div>Source: IgorGolovniov / Shutterstock.com</div></div><p>Since the height of the meme stock craze in 2021, <strong>AMC Entertainment</strong>&nbsp;(NYSE:<span><a href="https://investorplace.com/stock-quotes/amc-stock-quote/"><strong>AMC</strong></a></span>) has seen a stark reversal of fortune.</p>



<p>AMC stock trades for a mere $5 per share, representing a catastrophic drop of over 99%. This incredible downturn is linked to its aggressive strategy of issuing new stock, which has increased its share count from 23.6 million pre-pandemic to 295 million today.</p>



<p>Moreover, from a financial standpoint, AMC continues to buckle under the weight of its debt load. The embattled theatre chain operator&rsquo;s long-term debt is north of $4.5 billion, excluding <a href="https://investor.amctheatres.com/news-events/press-releases/detail/358/amc-entertainment-holdings-inc-reports-first-quarter-2024-results">the $4.42 billion operating lease</a> obligations through 2029. These obligations constrict the firm&rsquo;s ability to maneuver financially, weighing down efforts to rejuvenate its core cinema operations.</p>



<p>In addition, AMC has to contend with the broader decline in movie-going, propelled by the rise of streaming services. As foot traffic drops and revenue streams dry up, AMC faces an uphill battle to reclaim its former glory.</p>



<h2>BlackBerry (BB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/bb1600-300x169.png" alt="BlackBerry Limited logo. Company was originally known as Research In Motion (RIM), a Canadian software company specializing in cybersecurity.. BB stock"><div>Source: Poetra.RH / Shutterstock.com</div></div><p><strong>BlackBerry</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/bb-stock-quote/"><strong>BB</strong></a></span>), the former smartphone titan<strong>, </strong>has stumbled in its transition to a cybersecurity and IoT specialist.</p>



<p>Despite its best efforts, it hasn&rsquo;t been able to turn things around, as evidenced by its dwindling financial health. In its most recent quarter, BB reported a net loss of $42 million, more than a 280% increase from the $11 million loss recorded in the prior-year period.</p>



<p>Revenues similarly paint a remarkably bleak picture, <a href="https://www.marketwatch.com/story/blackberry-posts-smaller-loss-than-expected-as-it-marches-toward-profitability-051c3bbd">plummeting 61% to $144 million</a> in the first quarter (Q1) from $373 million in the previous year. Amidst these ongoing troubles, the firm seeks to separate its cybersecurity unit from its IoT division while implementing belt-tightening measures.</p>



<p>It recently laid off 200 employees while <a href="https://propakistani.pk/2024/02/13/blackberry-to-fire-more-employees-and-shut-down-6-global-offices/">shutting down six of its 36 global offices</a>. Hence, the ongoing losses and a notable decline in its IoT business pose serious questions about the viability of its business model in a hotly competitive environment.</p>



<h2>MicroStrategy (MSTR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/mstr1600-300x169.png" alt="A chart of the MicroStrategy (MSTR) logo with a Bitcoin"><div>Source: JOCA_PH / Shutterstock.com</div></div><p>Software giant <strong>MicroStrategy&nbsp;</strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/mstr-stock-quote/"><strong>MSTR</strong></a></span>) has made major trades in cryptocurrency and paid maidens in the past year. MSTR stock <a href="https://seekingalpha.com/symbol/MSTR/momentum/performance" target="_blank">gained upwards of 239%</a> last year as it continues loading up on Bitcoin.</p>



<p>It recently purchased <a target="_blank" href="https://www.coindesk.com/business/2024/06/20/michael-saylors-microstrategy-acquires-119k-more-bitcoin-for-786m/">an additional 11,931 BTC for $786 million</a> under the guidance of Executive Chairman Michael Saylor. Following the massive purchase, the company&rsquo;s BTC holdings now stand at a staggering 226,331, valued upwards of $15 billion.</p>



<p>However, the firm&rsquo;s heavy reliance on the notoriously volatile crypto market makes it prone to significant downside risk. Though the recent surge in BTC prices has bolstered its Bitcoin prices portfolio, the crypto market&rsquo;s inevitable fluctuations pose serious questions about its future. Moreover, we&rsquo;re already witnessing this vulnerability as MSTR stock plummeted more than 24% in the past month. Also, the trajectory of MSTR&rsquo;s stock is fraught with uncertain losses ahead.</p>



<p><em>On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a></em>.</p>



<p><em>On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.</em></p>
<div><p>Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor&rsquo;s of science degree in applied accounting from Oxford Brookes University.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/07/stop-laughing-3-meme-stocks-that-are-no-longer-funny/">Stop Laughing: 3 Meme Stocks That Are No Longer Funny</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Stop Laughing: 3 Meme Stocks That Are No Longer Funny

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><a href="https://investorplace.com/stock-types/meme-stocks/">Meme stocks</a> looked to be on the comeback trail in May of this year after retail trader Keith Gill, known online as &ldquo;Roaring Kitty,&rdquo; made a triumphant <a href="https://www.cnn.com/2024/06/12/investing/premarket-stocks-trading-meme-gamestop/index.html">return to social media</a> after a three-year hiatus. By posting only a few cryptic memes heralding his return, Gill managed to more than double the share prices of popular undervalued meme stocks such as <strong>GameStop</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/gme-stock-quote/"><strong>GME</strong></a></span>) and <strong>AMC Entertainment</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/amc-stock-quote/"><strong>AMC</strong></a></span>).</p>



<p>Other undervalued meme stocks, such as headphone maker <strong>Koss</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/koss-stock-quote/"><strong>KOSS</strong></a>) saw their <a href="https://finance.yahoo.com/news/meme-stock-speculation-propels-koss-204937539.html">stocks rise more than 20%</a> on news of Gill&rsquo;s return. Meme stocks are defined as shares of a company that have gained viral popularity due to heightened social media attention. They tend to be stocks of once-dominant companies that have fallen on hard times and whose shares are heavily shorted on Wall Street.</p>



<p>As is typically the case, the meme stock rally of late May did not last long and most of the companies involved saw their <a href="https://finance.yahoo.com/video/meme-stock-trade-maintain-momentum-202206838.html">share prices fall</a> back to earth throughout June. The pullback has left many meme stocks deep in the red and looking cheap at current levels. Here are the seven most undervalued meme stocks to buy in July 2024.</p>



<h2>GameStop (GME)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/05/gamestop-sign-gme-stock-storefront-1600-300x169.jpg" alt="GameStop (GME) sign on side of building in blue early morning light"><div>Source: shutterstock.com/EchoVisuals</div></div><p>We&rsquo;ll start with GameStop. Setting aside the return of Roaring Kitty, the brick-and-mortar video game retailer continues to report abysmal financial results that are weighing on its share price. Results were particularly bad for this year&rsquo;s first quarter, which management issued along with plans to <a href="https://www.cnbc.com/2024/06/07/gamestop-gme-q1-earnings.html">sell additional GME stock</a>, further diluting the holdings of existing shareholders.</p>



<p>The end result is that GameStop stock has declined 50% from the peak it reached in mid-May this year when Roaring Kitty resurfaced. The company&rsquo;s shares are 70% below the all-time high they reached in January 2021 during the original meme stock craze. GameStop&rsquo;s sales in the first three months of this year totaled $881.8 million, down 29% from $1.237<br>billion a year ago. News of the stock dilution appears to have dampened enthusiasm over Roaring Kitty&rsquo;s return. That and <a href="https://nypost.com/2024/07/01/business/roaring-kitty-sued-for-pump-and-dump-scheme-with-gamestop-stock/">a class-action lawsuit</a> alleging a classic pump-and-dump. </p>



<h2>Trump Media &amp; Technology Group (DJT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/dwac1600-300x169.png" alt="In this photo illustration, the Truth Social logo seen displayed on a smartphone with a photo of former US President Donald Trump displayed in the background. DJT stock"><div>Source: rafapress / Shutterstock.com</div></div><p>GameStop&rsquo;s earnings look sterling when compared to the finances of <strong>Trump Media &amp; Technology Group</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/djt-stock-quote/"><strong>DJT</strong></a>). The company, which runs the Truth Social platform that is essentially a clone of Twitter, reported <a href="https://apnews.com/article/trump-media-earnings-0ee9a4598f7da6c217720445605dfbdd">a net loss</a> for this year&rsquo;s first quarter of $327.6 million on less than $1 million in revenue. Consequently, it&rsquo;s been a bumpy ride for DJT stock in recent months.</p>



<p>The <a href="https://www.cnn.com/2024/06/25/business/trump-media-technology-group-value/index.html">share price has fallen 55%</a> from a peak reached in March of this year shortly after the company went public through a special purpose acquisition company (SPAC). DJT stock also fell 15% after former President Donald Trump was found guilty on 34 felony counts related to falsifying business documents in a criminal hush money case. More recently, the stock has fallen 30% in the last month.</p>



<p>While the share price decline is disappointing, it has certainly made DJT stock cheaper to buy for investors with an appetite for risk. </p>



<h2>Tilray Brands (TLRY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/08/tlry1600-300x169.png" alt="In this photo illustration, the Tilray Brands (TLRY) logo is displayed on a smartphone screen"><div>Source: rafapress / Shutterstock.com</div></div><p>Cannabis producer <strong>Tilray Brands</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/tlry-stock-quote/"><strong>TLRY</strong></a>) has also been getting cheaper as its finances deteriorate. The company most recently reported a quarterly loss of $105 million and lowered its forward guidance as its sales continue to decline. The result is that <a href="https://www.investopedia.com/tilray-stock-tanks-following-earnings-miss-outlook-cut-8628796">TLRY stock has fallen 20%</a> this year. Over five years, the stock has declined 96% and now trades deep down on the penny stock league tables.</p>



<p>Tilray said that it expects earnings of only $60 million to $63 million for its entire 2024 financial year. The <a href="https://www.fool.com/investing/2024/05/26/tilray-brands-just-slashed-its-guidance-is-it-a-bu/">new guidance</a> is down from earlier estimates of $68 million to $78 million in earnings. Management said they no longer expect positive free cash flow this financial year. The deteriorating situation has raised concerns about Tilray&rsquo;s ability to continue operating. Still, TLRY stock is not available to buy for less than $2 a share.</p>



<h2>BlackBerry (BB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/bb1600-300x169.png" alt="BlackBerry Limited logo. Company was originally known as Research In Motion (RIM), a Canadian software company specializing in cybersecurity.. BB stock"><div>Source: Poetra.RH / Shutterstock.com</div></div><p><strong>BlackBerry</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/bb-stock-quote/"><strong>BB</strong></a></span>) is also trading in the penny stock range having decreased 30% year to date. As with the other undervalued meme stocks, BlackBerry&rsquo;s share price is declining as the company reports woefully bad financial results. In this year&rsquo;s first quarter, BlackBerry&rsquo;s net loss grew by nearly 300% as its sales continued to deteriorate. The former smartphone maker reported a Q1 loss of $42 million, which was 282% greater than a net loss of $11 million a year earlier.</p>



<p>Revenue at BlackBerry totaled $144 million in Q1, down 61% from $373 million a year ago.<br>The poor results come as BlackBerry prepares to divide its cybersecurity business and its<br>Internet of Things (IoT) division. BlackBerry is also <a href="https://www.baystreet.ca/techinsider/4377/BlackBerrys-Net-Loss-Widens-By-Nearly-300-As-Sales-Plummet">cutting costs </a>as its financial situation worsens. Earlier this year, the company eliminated 200 jobs and closed six of its 36 global offices. It remains to be seen if the measures will be enough to right the ship.</p>



<p>BB stock has declined 50% in the last 12 months. </p>



<h2>Fisker (FSRNQ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/05/fisker1600-1-300x169.png" alt="Smartphone with logo of American electric vehicle company Fisker Inc. in front of business website. Focus on center of phone display. Unmodified photo. Fisker stock. FSRN stock"><div>Source: T. Schneider / Shutterstock.com</div></div><p>Now for a bankruptcy filing. Electric vehicle start-up <strong>Fisker</strong> (OTC:<span><a href="https://investorplace.com/stock-quotes/fsrnq-stock-quote/"><strong>FSRNQ</strong></a></span>) has <a href="https://www.reuters.com/business/autos-transportation/ev-startup-fisker-files-bankruptcy-2024-06-18/">filed for bankruptcy protection</a> from its creditors and plans to sell its assets. The company&rsquo;s stock now trades for less than two cents on the over-the-counter market. But that hasn&rsquo;t stopped retail investors from bidding up this troubled meme stock. Fisker stock continues to pop occasionally as investors nibble at it, though the share price is down 99% on the year.</p>



<p>Fisker is the latest in a string of electric vehicle companies to seek bankruptcy protection from creditors, following <strong>Lordstown Motors</strong>. Analysts say the businesses are failing as the electric vehicle stock bubble bursts and consumers move away from battery-powered autos in favor of gas-electric hybrid models. Fisker made more than 10,000 vehicles in 2023 but delivered only about 4,700. This is the second time Fisker has filed for <a href="https://www.financierworldwide.com/fisker-automotive-files-for-chapter-11">Chapter 11 bankruptcy</a>. The company now plans to sell its assets and restructure its debt.</p>



<h2>Canopy Growth (CGC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/cgc-1600-1-300x169.png" alt="Closeup of mobile phone screen with logo lettering of cannabinoid company canopy growth cannabis, blurred marijuana in the background. CGC stock."><div>Source: Ralf Liebhold / Shutterstock</div></div><p>Another cannabis stock. This one is <strong>Canopy Growth Corp.</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/cgc-stock-quote/"><strong>CGC</strong></a></span>). On the surface, things look to be improving for this company&rsquo;s stock. The share price has risen nearly 30% this year and is trading above $6. But don&rsquo;t be fooled. The gains and current share price are due to Canopy Growth executing <a href="https://www.baystreet.ca/stockstowatch/16668/Canopy-Growths-Stock-Falls-20-On-News-Of-Reverse-Stock-Split">a reverse stock split</a>. Reverse stock splits are the opposite of regular stock splits. Rather than reduce the share price, they raise it by consolidating the stock.</p>



<p>Reverse stock splits are seen by markets as an act of desperation by companies that are trying to artificially boost their share price, often to avoid being delisted from an exchange. In the case of Canopy Growth, the company was in danger of being delisted by the Nasdaq exchange as its share price had been trading below $1. In response, the company <a href="https://investorplace.com/2023/12/canopy-growth-just-enacted-a-1-for-10-reverse-split-of-cgc-stock/">consolidated its shares</a> on a one-for-10 basis. Over the last five years, CGC stock has fallen 98% amid speculation that the company will file for bankruptcy.</p>



<h2>AMC Entertainment (AMC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/amc-1600-1-300x169.png" alt="AMC theater in Glendale, Arizona. AMC stock."><div>Source: JJava Designs / Shutterstock</div></div><p>We&rsquo;ll end with another leading meme stock, AMC Entertainment. The largest U.S. movie theater chain saw its share price more than double when Roaring Kitty resurfaced. Unfortunately, the stock has since dropped 20% from a peak reached in mid-May and is on the cusp of falling into penny stock territory. In the last 12 months, AMC <a href="https://investorplace.com/2024/07/from-meme-darling-to-99-crash-is-this-amc-stocks-final-act/">stock has decreased 85%</a>, making the shares cheap if not undervalued. </p>



<p>AMC Entertainment continues to struggle with a decline in moviegoers that began during the COVID-19 crisis and a big debt load that it took on during the pandemic when its theaters were closed or forced to operate at reduced capacity. At the start of this year, AMC had <a href="https://www.barrons.com/articles/amc-stock-price-buy-sell-3fde93fb">$8.6 billion of long-term debt</a>, up from $5.2 billion before the pandemic. The company did manage to narrowly <a href="https://www.streetinsider.com/Earnings/AMC+Entertainment+%28AMC%29+Tops+Q1+EPS+by+1c%2C+Beats+on+Revenue%3B+Offers+Guidance+Comments/23195187.html">beat analysts&rsquo; forecasts</a> with its Q1 print. So there might still be hope for the company and its shareholders.</p>



<p><em>On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Finvestorplace.com%2Fcorporate%2Finvestorplace-publishing-guidelines%2F&amp;data=04%7C01%7C%7C5a525d9084ae4cdfb8f008da1edbf06e%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637856227247256778%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&amp;sdata=uLFH3ol2mcVxuJrHYW3xDLVx3qGIvonIwHvcfUa%2Fo24%3D&amp;reserved=0">Publishing Guidelines</a>.</em></p>
<div><p>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/07/the-7-most-undervalued-meme-stocks-to-buy-in-july-2024/">The 7 Most Undervalued Meme Stocks to Buy in July 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

The 7 Most Undervalued Meme Stocks to Buy in July 2024

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>There&rsquo;s a great deal to like about <strong>Soundhound AI </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/soun-stock-quote/"><strong>SOUN</strong></a></span>) stock at this point. Its exposure to the AI megatrend, alliance with <strong>Nvidia</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/nvda-stock-quote/"><strong>NVDA</strong></a></span>) and strong, overall growth are all in its favor.</p>



<p>However, given the stock&rsquo;s recent, overdone rally, along with the name&rsquo;s extremely high valuation and significant competition, I recommend that investors hold the shares but avoid buying them.</p>



<h2>Soundhound AI Stock&rsquo;s Many Positive Attributes</h2>



<p>Soundhound, which <a href="https://finance.yahoo.com/quote/SOUN/profile/">produces an AI-powered voice assistant </a>used by businesses, is benefiting from being part of the AI megatrend that is being embraced by investors and many companies. Partly as a result of this situation, Soundhound AI stock<a href="https://www.marketwatch.com/investing/stock/soun?mod=search_symbol"> soared 157%</a> between the beginning of the year and the afternoon of July 11.</p>



<p>The fact many companies seek to save money by implementing AI-powered tools likely helped Soundhound successfully convince many to adopt its offerings. That is a huge factor behind Soundhound&rsquo;s impressive growth. Last quarter, the firm&rsquo;s <a href="https://seekingalpha.com/pr/19720517-soundhound-ai-reports-73-percent-q1-revenue-growth-to-11_6-million-first-quarter-closes-226?hasComeFromMpArticle=false&amp;source=section%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews">top line surged 73%</a> versus the same period a year earlier to $11.6 million while its cumulative subscriptions &amp; bookings backlog soared about 80% year-over-year to a very impressive $682 million.</p>



<p>Finally, Soundhound&rsquo;s alliance with Nvidia boosted SoundhoundAI stock while also lifting financial results. In February, the chip giant <a href="https://www.reuters.com/technology/arm-soundhound-ai-shares-jump-nvidia-builds-stake-2024-02-15/">disclosed that it</a> purchased almost $3.7 million of Soundhound AI stock. The information undoubtedly lit a fire under Soundhound&rsquo;s shares, as its stock surged from $2.26 on Feb. 14, the day <a href="https://seekingalpha.com/news/4067332-nvidia-stakes-arm-holdings-soundhound-ai-recursion-tusimple-nano-x-imaging">before the news was disclosed,</a> to $8.24 on March 18. Although <a href="https://finance.yahoo.com/quote/SOUN/">the shares subsequently sharply retreated</a>, Nvidia&rsquo;s investment in Soundhound has put the latter company on <a href="https://www.aol.com/why-soundhound-ai-stock-started-143040451.html">many investors&rsquo; radar</a> and made them excited about its outlook.</p>



<p>Also importantly, the company&rsquo;s association with Nvidia has undoubtedly helped it obtain more customers since firms are likely impressed by the investment.</p>



<p>Afterall, Soundhound&rsquo;s<a href="https://seekingalpha.com/news/4104306-soundhound-q1-revenue-surges-as-top-boss-says-voice-ai-fast-becoming-must-have-tool"> list of customers</a> is impressive. Among them are <strong>Applebee&rsquo;s</strong>, <strong>Church&rsquo;s Chicken</strong>, <strong>Stellantis </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/stla-stock-quote/"><strong>STLA</strong></a></span>)<strong>,</strong> <strong>Honda</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/hmc-stock-quote/"><strong>HMC</strong></a></span>) and <strong>Hyundai</strong> (OTCMKTS:<span><a href="https://investorplace.com/stock-quotes/hymly-stock-quote/"><strong>HYMLY</strong></a></span>).</p>



<h2>A Potentially Overdone Rally</h2>



<p>On July 10, SoundHound announced Stellantis <a href="https://seekingalpha.com/pr/19781913-soundhound-chat-ai-launches-in-peugeot-opel-and-vauxhall-vehicles-throughout-europe?hasComeFromMpArticle=false&amp;source=section%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews">began including </a>&ldquo;its&nbsp;SoundHound Chat AI&nbsp;voice assistant with integrated ChatGPT&rdquo; in its &ldquo;Peugeot, Opel and Vauxhall vehicle brands across 11 European markets.&rdquo; The news sparked a huge rally in SoundHound AI stock.</p>



<p>Not surprisingly, SoundHound <a href="https://www.businesswire.com/news/home/20240710077406/en/">did not reveal</a> the financial terms of the deal. But as a longtime investor in <strong>BlackBerry</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/bb-stock-quote/"><strong>BB</strong></a></span>), I know the royalties software makers obtain from auto companies can be quite low. For example, BlackBerry <a href="https://www.trefis.com/stock/bbry/articles/457499/blackberrys-automotive-technology-bets-continue-to-gain-traction-driving-q3-results/2018-12-21?from=filmstrip:top">historically only received </a>$1.50 to $5 per vehicle for its infotainment offering. It also received as little as $5 per vehicle for its more advanced technologies.</p>



<p>What&rsquo;s more, SoundHound <a href="https://www.soundhound.com/newsroom/press-releases/soundhounds-most-powerful-voice-ai-yet-now-in-stellantis-vehicles/">began providing voice</a> AI systems for Stellantis last year. That means this new deal may not produce large revenue increases for the tech firm.</p>



<h2>Valuation and Competition</h2>



<p>By any measure, the valuation of Soundhound AI stock is quite elevated. The shares have a <a href="https://finance.yahoo.com/quote/SOUN/key-statistics/">forward price-to-sales</a> ratio of over 17 times. Its<a href="https://finance.yahoo.com/quote/SOUN/key-statistics/"> enterprise value-to-revenue </a>ratio is a gigantic 30.5 times.</p>



<p>As I noted in a previous column, the company <a href="https://investorplace.com/2024/04/soundhound-ai-stock-is-too-risky-to-touch/">reportedly has many </a>competitors. Amomg them are <strong>Alphabet&nbsp;</strong>(NASDAQ:<a href="https://investorplace.com/stock-quotes/goog-stock-quote/"><strong>GOOG</strong></a>, <a href="https://investorplace.com/stock-quotes/googl-stock-quote/"><strong>GOOGL</strong></a>),&nbsp;<strong>Microsoft</strong>&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/"><strong>MSFT</strong></a>) and&nbsp;<strong>Apple</strong>&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/aapl-stock-quote/"><strong>AAPL</strong></a>).&nbsp;Further, a company called <strong>Cerence </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/crnc-stock-quote/"><strong>CRNC</strong></a></span>) is said to have taken automotive customers away from Soundhound in the past.</p>



<h2>The Bottom Line on SoundHound AI Stock</h2>



<p>I believe that SoundhoundAI has a bright future. However, given the company&rsquo;s high valuation, its many tough competitors and the market&rsquo;s exuberance about its deal with Stellantis, I expect the shares to drop significantly below their current levels in the medium term.</p>



<p>Such a downturn could occur because Soundhound reports weaker-than-expected quarterly results or because it loses a key customer. Alternatively, a correction by the stock market could cause the company&rsquo;s share price to drop sharply.</p>



<p>Consequently, I recommend investors wait for a meaningful pullback before pulling the trigger rather than chasing it in the wake of its recent rally. However, investors who already own the shares should hold onto them.</p>



<p><em>On the date of publication, Larry Ramer held a long position in BB. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a></em>.</p>



<p><em>On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.</em></p>
<div><p>Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel&rsquo;s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.</p></div><h3>More From InvestorPlace</h3>
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	<p>The post <a href="https://investorplace.com/2024/07/soundhound-ai-stock-may-be-poised-for-a-correction-be-careful/">SoundHound AI Stock May Be Poised for a Correction. Be Careful.</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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BlackBerry

BlackBerry (BB) Forecast

BlackBerry (NYSE:BB) Stock, Quote.Headers.trade-ideas