BlackBerry (BBRY) Stock: Why It’s Falling & Should You Be Worried?

BlackBerry Ltd (NASDAQ: BBRY)

BlackBerry is having a rough time in the market today, and for an understandable reason. Is it a good reason? Well, that’s up for debate, but it’s understandable. Yesterday, Facebook and Whatsapp made a very big announcement, one that could lead to bad news for BBRY. Today, we’ll talk about that announcement, what we’re seeing in the market as a result, and whether or not you should be concerned.

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Facebook & Whatsapp Take A Stab At BBRY

Blackberry is having an incredibly rough time in the market at the moment after Facebook and Whatsapp (owned by Facebook) took a stab at the company. According to announcements made by Facebook, neither it nor Whatsapp will continue to support the BBRY QNX operating system. Many investors are seeing this as a big hit to the smartphone business at BBRY. After all, about 1/6 of the world’s population uses Facebook and Whatsapp is the most popular instant messaging app online today. So, investors believe that since these apps will no longer support BlackBerry’s QNX, we are going to start seeing even less by way of smartphone sales, which is tough in the first place since BBRY only takes less than 1% of the smartphone market share.

How Investors Are Reacting To The News

Whenever any news is released with regard to a publicly-traded company, we can expect to see either gains or losses in the stock associated with that company. Following the announcement of this news, we’re seeing declines. After all, investors are concerned that the already struggling smartphone business at BBRY is going to struggle even more thanks to the recent developments. As a result, BlackBerry is currently (10:05), $7.76 per share after a loss of $0.18 per share or 2.27% thus far today.

Should You Really Worry Yourself With This News?

To be honest, I’m bullish on BlackBerry regardless of the news that was released by Facebook and Whatsapp. Here’s why:

  • BBRY Has A Solid Smartphone Plan – BBRY knew that it simply couldn’t keep up with the competition in the smartphone space, not because they didn’t have great hardware and security, but because their operating system was behind the ball. As a result, the company launched the Priv last year. The Priv is a phone that combines the incredible hardware and security that BBRY is known for with the overwhelmingly popular Android operating system. Between the two, the Priv sold like candy. As a result, future lines of smarthpnones by BBRY will run the Android operating system. So, BlackBerry’s future phones will be supported by Facebook and Whatsapp.
  • QNX Isn’t Dead – While Facebook and Whatsapp aren’t looking to support BBRY anymore, that doesn’t mean that BlackBerry’s QNX operating system doesn’t have support. The truth is that the QNX operating system may not be the best thing for smartphones, but when it comes to other indications, it is perfect. In fact, you may be surprised to find out that QNX is being used in traffic signals, medical equipment, manufacturing equipment and a long line of other products. In fact, QNX is becoming one of the leading operating systems that is running the figurative Internet of Things.

The Bottom Line

The bottom line here is that I understand that Facebook and Whatsapp have taken a stab at BBRY. However, if they continue to move forward with their plan to power their phones with the Android operating system, they have nothing to worry about there. Also, with QNX being so popular in the Internet of Things, I believe that BBRY is earnings more than most think. All in all, this company seems to be gearing up for gains. So, get ready for the growth!

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What Do You Think?

Where do you think BBRY is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of YouTube]

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