Shares of BlackBerry are down again this morning following several stock downgrades by analysts.
After a disappointing quarterly reportfrom the Canadian smartphone maker, shares plunged 27%, and have since continued to decrease, threatening single digit territory for the first time since 2012. The company was expected to profit four cents per share but instead lost 13 cents per share.
Morgan Stanley, Deutsche Bank, Hudson Square Research, Needham, Citi, Jefferies, and Credit Suisse all downgraded their views of BlackBerry this week.
"We fear enterprise and consumer opinion of BB10 could have been materially harmed by Friday's earnings, which if left unaddressed, could negatively influence the actual performance of the business," a Morgan Stanley analyst was quoted as saying in the Wall Street Journal.
"Despite the significant post-earnings reaction, we continue to see further downside," a Credit Suisse analyst wrote.
One Needham analyst targeted the devices themselves in his report, claiming neither the Q10 or Z10 possesses a "wow factor" and affirming that "BlackBerrys are no match for iPhones and Androids."
Some analysts now believe BlackBerry shares will drop to as little as $6, an all-time low. The company once traded above $140 in 2008.
On Friday, BlackBerry posted $3.1 billion in revenue but lost $84 million.
"During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform," stated Heins during his company's quarterly earnings report. "We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions."
"Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers," he added.
Source: TechVibes