BlackBerry Ltd (TSX:BB)(NYSE:BB) is coming off yet another disappointing quarter as the company posted another loss and sales were down from the previous period. At just $174 million U.S. in revenue for the period ending May 31, it was a sizeable 17% decline from three months earlier when its top line was at $210 million U.S.
Unfortunately, there hasn’t been much growth for BlackBerry as its sales have typically been above the $200 million U.S. But this time, even that threshold was breached. Although CEO John Chen remains optimistic about the company’s turnaround and says that he sees progress, he did admit that “this is taking longer than I expected.”
But not everyone is going to wait around for the company to figure things out. Last week, multiple brokerages downgraded the stock and set lower price targets for it. Year to date, shares of BlackBerry were still up more than 80% as of last week. However, that’s largely been due to the meme hype and retail investors betting on this underdog stock. It has proven to be a risky bet and at this stage, the stock could be on its way towards a selloff given this underwhelming earnings report.
With declining sales it’s hard to put a positive spin on things, especially in an era where companies are doing more of their business online and would likely be in greater need of BlackBerry’s products and services – but that just isn’t translating into a stronger top line. Investors who want to take a chance on BlackBerry may want to wait as the stock could go lower in the weeks ahead.