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BlackBerry stock rallies further on back of GME share price rise. Should I buy this US stock?

 

BlackBerry stock rallies further on back of GME share price rise. Should I buy this US stock?

·4-min read
Graph of price moves, possibly in FTSE 100
Graph of price moves, possibly in FTSE 100

BlackBerry (NYSE:BB), the iconic brand and forerunner to the smartphone, has had a tough few years. In 2008, the BlackBerry share price was trading as high as $145 a share, but by 2012 had spectacularly fallen from grace. In the 2020 March market crash, it fell below $3.

However, in the past two months, it has made a remarkable comeback. At the time of writing, Blackberry shares are trading at $22. So, does this mean it’s now a ‘must-buy’ tech stock with an exciting future ahead? Let’s not get ahead of ourselves.

Blackberry stock rallies

Nowadays, BlackBerry is a software security firm rather than a smartphone manufacturer. Security is an increasingly vital part of our world, so there’s a clear need for such an offering. And, in the past few weeks, a few newsworthy announcements have helped to boost the BB share price.

In December, BlackBerry announced a joint venture with Amazon Web Services to develop a cloud-based platform for the auto industry. Shareholders welcomed this news. Then, earlier this month, a lawsuit between Facebook and BlackBerry was reportedly settled, which helped to boost sentiment around the share.

Shortly after, the company announced it had sold 90 smartphone patents to Huawei Technologies. This made an exciting development, as Blackberry reportedly has around 38,000 patents in its library. The announcement of a partnership with Chinese search engine Baidu in relation to electric vehicle tech followed.

While all these news items gave an understandable boost to the BB share price, the extent of the rally, up 220% in a month, is surprising analysts and investors alike.

Are these shares rising in a short squeeze?

On Monday, a news release stated BlackBerry didn’t know of any reason for the recent share price rally. However, there’s speculation it follows on from the incredible story of GameStop’s (NYSE:GME) meteoric share price rise.

The GME share price rise over the past few days has been gripping to watch. Reportedly

BlackBerry stock rallies further on back of GME share price rise. Should I buy this US stock? BlackBerry stock rallies further on back of GME share price rise. Should I buy this US stock? Reviewed by World Trends | تريندات العالم on يناير 27, 2021 Rating: 5

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