Is BlackBerry Finished?
Shares of smartphone manufacturer BlackBerry (NASDAQ:BBRY) have taken a big hit due to failed bids to buy out the company. With an increasingly competitive smartphone market slicing into BlackBerry’s market share, is the company now doomed, or is there a glimmer of hope for the embattled BlackBerry?
A Very Abbreviated Account of the Bad News
Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) are mopping the floor with BlackBerry in the international smartphone battle, big time. The failed bids would have given BlackBerry a stronger position to attempt rebuilding itself. The company's restructuring efforts might eat away the cash balance further down the road.
A Very Abbreviated Account of the Good News
BlackBerry’s new CEO has good experience under his belt and a long-term focus on strengthening the company. The new convertible debt deal will allow the company more time to ramp up restructuring efforts and focus on research and development. BlackBerry does have social presence through BBM, a strong patent portfolio, and millions of subscribers.
The Bottom Line
BlackBerry is not finished yet and does have some positives going for it even amidst the turmoil. The road ahead for BlackBerry will certainly be a challenging one to navigate. I'd advise staying out of this high-risk turnaround play for now as BlackBerry has done a smashing job of destroying shareholder value over the past few years. There are no tangible indicators that BlackBerry's new CEO will do any better than the previous one. There’s plenty of time left to get in to BBRY stock if the company can indeed stage a turnaround, but at this early stage, with no major catalysts on the horizon, BBRY stock is a liability to any portfolio.