With a new CEO by the name of John Chen in charge with a new strategy for Blackberry based on a rational niche oriented approach to the market, Blackberry’s stock is seeing new highs. Although the stock market is impossible to truly predict, it would seem that these new highs are sustainable. As a stock that has done very poorly and underperformed in the market, this shift could be viewed as the markets acknowledgement that the new CEO might be onto something.
Do you remember when Blackberry’s stock was consistently in the $100 plus range. Those were heady days for Blackberry and the beloved Crackberry that even Obama was a tote carrying card member. It was also during a time in which Apple had made its entry into the Smartphone market.
Things were about to change and change radically with Apple’s entrance. Blackberry was unprepared totally for the market shift that occurred to touch devices. Its first offering to fend off the iPhone, the Storm, was panned as a badly crafted touch device of which it was.
A Different Blackberry
Thornstein, the CEO just before Chen was not able to capture the mindset of America which had now switched in droves to both the iPhone and the later launched Android. Chen though has come up with a strategy that draws on three things:
- QNX the OS that drives the new touch devices which are winning awards
This three pronged strategy seems to be sound drawing on the best of Blackberries technologies. In fact, so much so that three Canadian banks decided to use the ultra secure Blackberry network to do financial transactions an emerging market opportunity for finance.
The Stock is Responding
With the likes of John Chen and his well defined strategy for a rebounding Blackberry there is encouragement that it is not time to count Blackberry out. As such, the stock is viewed as a buy and growth opportunity stock and was a long with Apple chosen as the technology stock to keep an eye on.