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Blackberry Stock Price Could Have 50% More Upside From Here

The Blackberry stock price may be the next beneficiary of the ‘meme’ stock revival. After Gamestop and AMC’s recent rallies, BB may be next in line.

Blackberry (BB) is last trading at $11.56 +14.80%.

In January, Blackberry was one of the stand-out performers. The stock gained 300% in the second half of the month as retail traders surged into the legacy tech stock. The popular WallStreetBets Reddit forum had earmarked the struggling stock as ripe for a comeback.

Like Gamestop (GME), AMC Entertainment Group (AMC), and a host of other downtrodden stocks, Blackberry had been gaining momentum on the infamous investing forum.

The surge in retail buying had lifted the share price from $6.52 to $28.77 in the first four weeks of trading in 2021.

There had been some positive developments for the company. A favourable outcome in an ongoing legal battle with Apple (AAPL), was followed by the news that Amazon would work with the company to develop a new cloud connected intelligent vehicle platform.

Additionally, the company also monetised its Intellectual property portfolio and sold a deluge of patents to Chinese phone maker Huawei.

However, the Blackberry stock price rise was unsustainable and soon came crashing back to earth.

After parabolic rises in a handful of meme stocks, brokers and exchanges enforced policies to put a lid on prices. Several large hedge funds had found themselves on the wrong side of the Gamestop trade and had taken multi-billion dollar losses.

This led to the collapse in GME, forcing liquidation in many of the other popular WallStreetBets stocks.

Between the end of January and the 13th of May, Blackberry declined -70% to $7.71. However, the latest revival in Gamestop and AMC has put Blackberry back in focus.

Blackberry Stock Price Outlook

The recent price action has been very encouraging for Blackberry investors. We can see on the daily chart that the 200-day moving average at $7.72 reversed the recent sell-off.

Since then, the stock has gained just under 60%. This has taken the Blackberry stock price above the 100 DMA at $10.36. Another positive sign for the price.

On the upside, the next level to watch for now is the mid-March high of $12.52. If the price can clear this level, I see a good chance of an extension higher to $18.00, around +55% higher than last night’s close.

Nonetheless, volatility will be high, and the prices will be under the microscope of the regulators. Bearing that in mind, if the market closes below the 100 DMA at $10.36, this would cancel my immediate bullish outlook.

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BB Daily Chart

Blackberry stock price

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