BlackBerry Ltd. (NASDAQ:BBRY) Drops In Spite Of Announcements
Yesterday’s trading session saw BlackBerry Ltd. (NASDAQ:BBRY) stumble another 5.7% down the charts, in spite of the company issuing a reassuring announcement and receiving a lot of coverage by online analysts.
BBRY stock prices experienced a brief resurgence that saw it over the $7 threshold two weeks ago, after announcing that it has managed to break even in Q1 2016. The net loss it acknowledged at the end of said quarter was primarily attributable to non-cash, long-lived asset impairment charge of $501 million.
This turn of events managed to keep the ticker on the rise for a brief period of three sessions. Unfortunately for its fervent supporters, BBRY‘s momentum did not outlive the last weekend. The ticker has been falling ever since, and even the news that BBTY has entered into a “strategic alliance” with PT Elang Mahkota Teknologi Tbk. failed to arrest its descent.
This is a somewhat odd state of developments, since The Emtek Group is a huge company, focused on media, content and technology businesses in Indonesia, where roughly two thirds of BBRY‘s users live. The two companies joining forces to provide cross-platform BBM users with access to enriched content and services is big news for BBRY indeed, as it will most likely result in yet another broadening of commercial horizons for BBRY.
For a while now there have been speculations that it may be in BBRY‘s best interest not wage an uphill battle against such giants as Alphabet Inc. (NASDAQ:GOOGL), Samsung and Apple Inc. (NASDAQ:AAPL) in the high-pressure handset market, and that it could do better if it opted to focus on doing its own thing in the software scene.
Is the Emek Group strategic alliance the first sign that this is indeed the route BBRY has decided to take? Only time will tell.