BlackBerry Ltd. (BB) stock prices soared by a substantial 31.92% as of the market closing on June 2nd, 2021, bringing the price per share up to USD$15.25 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by another 30.10%, bringing it up to USD$19.83.
This news came out on the heels of the company’s announcement that it would be participating virtually in the upcoming Global Consumer, Technology & Services Conference, hosted by R.W. Baird. However, there haven’t been any disclosures of what the company will present, if they will at all, for BB stock prices to soar to this extent in such a short time period.
Along with BBBY and KODK, BB seems to be perplexingly rising in spite of an absence of news or even negative news. It seems to be the case that the BB stock price has been subjected to the recent WallStreetBets phenomenon. This phenomenon stems from the online user-community Reddit and has been disrupting markets and corporate investors strategies for the past few quarters. Retail investors coordinate by artificially pumping shares of inferior businesses in the hopes of profiting from a short squeeze.
Reddit Short Squeezes
With BB stock prices have exploded earlier in the fiscal year 2020 due to a Reddit-inspired short squeeze, but then fell into a spiraling downtrend for the next several months. Mid-May saw the stock hold its 200-day moving average, with an unexciting breakout over downtrend resistance. Subsequently, the company’s share prices stayed close to the 10- and 21-day moving averages, trading in in a tight range during that time.
Scope of BB Short Squeeze
Nearly 10% of all conversations on Reddit are voicing hopes for a short squeeze on BB, as per reports from HypeEquity, with 1% of the social media’s conversations anticipating a USD$20 price target. The company’s short interests totaled 9% of its total shares earlier in Q1 2021, as per data collected by MarketBeat. March had seen the company miss analyst forecasts for Q4 2020.
Future Outlook of BB
Despite the lack of significant mentions of the company in the news as of late, BB is likely to not look a gift horse in the mouth and capitalize on the opportunities presented to it as a result of the Reddit push. Current and potential investors are hopeful that the company’s management will be able to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.