Blackberry Shares Poised for Gains?

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Blackberry Shares Poised for Gains?

Blackberry Ltd. (BBRY) is planning to launch yet another new smartphone model, based on a report shared by Chief Executive John Chen. This new phone will be called the Blackberry Classic and will include features from the BB7 software. It will also feature the usual trackpad and keyboard belt.

This was enough to draw a few positive remarks from traders watching Blackberry shares, citing the smaller than expected loss back in the last quarter of 2013 as a positive sign that the company might reach a turning point. Recall that Blackberry’s revenue has been on a continuous decline, falling to $976 million instead of staying above the $1 billion mark.

According to Raymond James analyst Steven Li, “Despite these positive attempts to slow the decline, we estimate BlackBerry still needs to cut another 30%–40% in opex [operating expenses] to be able to eke out a profit, assuming limited contribution from hardware.”

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Blackberry Shares Forecasts

For the next couple of years, the company is simply working on achieving a breakeven target for profits, and this means having to introduce new technology in order to make up for its running losses. Some analysts on Wall Street have already noted that Blackberry shares could keep declining as the company could face a cash crunch sooner or later.

Despite this, Blackberry CEO Chen believes that the company is on a better financial footing these days. Prices of Blackberry shares have surged by more than 20% when Chen was appointed interim CEO back in November last year.

Just like with most tech companies, the share performance is very much dependent on new products or software being introduced. At the moment, Blackberry is still facing stiff competition from Apple, Samsung, and Nokia. Securities analysts have noted though that Blackberry still has some features that are generally preferred by most businessmen, such as the keyboard and push email.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com