BlackBerry stock price continues to grind sideways with low trading volumes. Is it time to remove BB from the watchlist, or could it spring back to life?
BlackBerry (NYSE: BB) finished Friday at $10.16., down $0.19 (-1.84%).
After grabbing the headlines in January and June, the meme-stock crowd have become very quiet. BlackBerry and the likes of AMC Entertainment and GameStop are no longer dominating news feeds. In fact, BB is now hardly mentioned on Reddit’s wallstreetbets retail investing forum at all.
Either, this is due to the stock losing 50% in the last two months. Or the stock losing 50% in the last two months is due to the lack of forum activity. Whichever it is, the BlackBerry stock price is struggling.
However, this is not the first time in 2021 the price has flatlined. Previous periods of low volatility this year gave way to the exact opposite. But will the same be said of now, or will BB fade back into obscurity?
BB stock analysis
Interestingly, the short interest in Blackberry has increased by 10%. Presently, 16 million of the available 40 million share float are in the hands of short-sellers. This represents 22.89% which is considered extremely high, especially when the average trading volume has dropped below 500k shares per day. Furthermore, current estimates suggest it would take more than 18 days for the shorts to cover the entirety of their bearish exposure.
Therefore, the Blackberry stock price is still vulnerable to another short-squeeze. Although, this will need new investors to support the cause.
The price action indicates a stalemate situation between the buyers and the sellers. But at some stage, one side will win out. However, it’s hard to say which.
BlackBerry is definitely overvalued. But that does not make it a clear cut sale.
And whilst they may be right in the long term, the increasing number of people betting against the price are playing with fire.
As with all heavily shorted stocks, it’s tricky to provide an accurate Blackberry stock price prediction. Although I do predict BB may soon be grabbing headlines again.
BlackBerry stock price chart (daily)
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