Blackberry (NYSE: BB) lost over 20 percent of its market cap value on Tuesday after the company posted earnings and revenue that missed investor expectations.
Based on its market cycles, we believe Blackberry stock (ticker: BB) may fall even further.
The company reported revenue of $261 million, compared to analyst estimates of $268 million. Management also lowered its forecast for annual revenue growth from 20-27% to 20-25%. With regard to earnings, Blackberry lost $44 million compared to a $43 million profit one year ago.
The loss was due in part to its acquisition of antivirus specialty firm Cylance. As CEO John Chen explained, “With the addition of the Cylance AI security capabilities, we have the opportunity to provide a first cybersecurity platform for the auto market.”
Our approach to stock analysis uses market cycles to project price action.
Our analysis is that three months ago BB brokedown from its cycle low. While it rallied back to that low, with this failure we believe there may be more trouble. This period of risk is likely to last until November.
Blackberry (BB) Stock Weekly Chart
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