Blackberry Share Price: Will it Pop or Drop After Earnings?

Meme stocks like AMC and GameStop have done well recently as the inverted yield curve points to a more cautious Fed. The Blackberry share price has not been left behind in this uptrend. BB STOCK is trading at $7.92, which is its highest point since February 2. The price is about 37% above the year-to-date low, bringing its valuation to $4.2 billion.

Blackberry has made headlines in the past few weeks. Last week, the firm said that it had inked a deal with Marelli in its bid to grow its market share in the Chinese market. The management also decided to sell its legacy patents to Catapult for $6000 million. The goal was to raise cash, improve its balance sheet, and allocate funds to innovation. 

This week’s main focus will be the Blackberry earnings that come on Thursday. In its most recent results, the firm’s revenue of $184 million was better than the median estimates by about $7.42 million. In addition, its GAAP EPS of $0.12 was also better than what analysts were expecting. In this week’s results, analysts believe that the firm’s revenue rose to $186 million. For the full year, expectations are that 2022 and 2023 will rise to $718 million and $796 million.

Analysts have mixed views about Blackberry’s share price ahead of earnings. For example, those at RBC Capital Markets recently upgraded the stock saying that the valuation was reasonable. Still, the target of $7 is below where the shares are. Analysts at Canaccord, Scotiabank, TD Securities and CIBC have downgraded the company. So, how will the Blackberry stock price trade after earnings?

Blackberry share price forecast

The BB share price formed a strong double-bottom pattern at around $5.86 this year. In most cases, this pattern is usually followed by a bullish performance. However, it managed to move above the upper chin of the double-bottom at $6.98. Also, the stock moved above the 23.6% Fibonacci retracement level while the MACD has moved above the neutral point.

While it is hard to predict, the Blackberry share price will likely rise to the 50% Fibonacci retracement level at $9.10 after earnings. This view will be invalid if it drops below $7.