The Canadian company, Blackberry, saw some great news on Monday. Blackberry Ltd shares have risen 23% to $22.92 since the market opened on Monday. That is a 40% increase compared to the stock’s price on Friday. In a press release, the company said it’s not aware of the reason why the company’s stock jumped. However, investors have been pouring money into the company because of its promising outlook.
Blackberry, a Canadian phone manufacturer, is trying to grow its business of selling intelligent security software and services for the automobile sector. The company released a piece of news on Tuesday, that it was partnering with the Chinese company Baidu to use Blackberry’s QNX technology in its self-driving cars. This deal will boost sales of Blackberry’s QNX technology. Moreover, in December 2020, Blackberry and Amazon Web Services (AWS) announced an agreement to develop AWS’s intelligent vehicle data platform, which is called IVY.
Additionally, Blackberry’s stock increased another 10% on Tuesday, which reached $24.76, before spending much of Tuesday morning see-sawing. The increase in stock price, a nine-year high, is kind of predicted when the market hears the significant news. Especially because the plug-in and electric cars market is growing in China. It grew by more than 1 million cars last year.
Therefore, besides the company saying there is no material news that explains the jump in the stock price, we can speculate the reason behind it. It can be due to a swell of investor interest or perhaps a delayed reaction from the Blackberry – Amazon agreement news.
References:
1) BlackBerry shares see-saw after setting 9-year high on Monday | CBC News. (2021, January 26). Retrieved January 26, 2021, from https://www.cbc.ca/news/business/blackberry-shares-tuesday-1.5887822
2) Entrepreneur. (2014, October 29). BlackBerry CEO: Don't be tempted by trendy, popular phones. Buy ours instead. Retrieved January 27, 2021, from https://fortune.com/2014/10/29/blackberry-ceo-dont-be-tempted-by-trendy-popular-phones-buy-ours-instead/
3) Zochodne, G. (2021, January 26). BlackBerry shares are going crazy - and nobody's quite sure why. Retrieved January 26, 2021, from https://financialpost.com/investing/blackberry-shares-halted-amid-inexplicable-wild-surge-to-start-2021
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