bye-bye, BBRY

BBRY Blackberry stock photo
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BBRY Is Doomed — BlackBerry Stock Loses Staff, Market Share & Faith

BlackBerry (BBRY) has been circling the drain for some time, with operations now running in the red and the stock off over 90% from its pre-recession highs.

BBRY has tried to keep a brave face, banking on the launch of its Q10 and Z10 smartphones this year, but poor reception of the new BlackBerry gadgets have made the reality painfully clear.

Namely, that BlackBerry is doomed.

Now, BBRY isn’t going bankrupt tomorrow, and surely Apple (AAPL) iPhones and Google (GOOG) Android devices will never be the only options. There’s room for a third and maybe even fourth player in the smartphone and tablet space.

But BlackBerry ain’t it, friends. This company is about to disappear.

Consider the following ugly BBRY reports:

BBRY Writedowns Loom: Thanks to anemic sales of the BlackBerry Z10 and Q10, expect big writedowns at BBRY in the next quarter or two — akin to the $900 million writeoff Microsoft (MSFT) had to record thanks to overproduction of its Surface RT tablet coupled with slow sales out of the gate.

bbry workers

BBRY work force trends were ugly even before reports of a 40% reduction. (Source: WSJ)

Gutted BBRY Work Force: This week, the Wall Street Journal reported that 40% of BlackBerry employees could get pink slips by year’s end — and that’s after recent cutbacks were already showing a sharp downward trend in the BBRY work force. Layoffs on that scale are a sign of a company in panic, not a company with a bright future.

BlackBerry Fire Sale: The BBRY writedowns and layoffs may be the first steps in cleaning up the company for sale, but don’t fool yourself into thinking this will be a purchase by a white knight that will turn around the troubled tech stock. While individual segments of the company are attractive, as a whole they are actually worth less — so a BlackBerry buyout would be motivated by a desire to sell BBRY stock for parts to its competitors, not to preserve the company.

BBRY Market Share: Microsoft has been pushing hard to get the No. 3 spot in the hardware market from BlackBerry, and with its deep pockets and enterprise push, it seems to have finally won. MSFT and Windows Phone handily beat BlackBerry in a host of major markets this summer to win third place in global market share behind Android-powered phones and iPhones running Apple iOS.

To make matters worse, this stripping down of BBRY is happening even as the company continues to waste money on doomed endeavors such as the Z30 phablet — a cross between a smartphone and tablet that BlackBerry launched this week. The gadget has a huge 5-inch screen, but given BlackBerry’s failure with the PlayBook tablet and recent shunning of its phones … why would this be a good idea?

Related Reading on BBRY

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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Comments
  • HollyBolly

    No name on this article. Paid Basher IMHO.
    Give it a rest.

  • lborsato

    From the bottom of the article:

    Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

  • aa

    Why 46% of shares of BBRY are still held by institutional investors? Is that a good sign?

  • Jose Nunez

    this is a repost of a previous article with an almost identical headline. the other article has 40 comments, some of which correctly identify this as a “short” piece. I’m guessing a bit of shorters need to make a buck before a squeeze hits. accordingly, shares of BBRY are currently down 3%. nice job.

  • WalterB

    I hope you’re incorrect in your predictions. Currently the blackberry 10 phones are the BEST on the market for a whole host of reasons. The reason this is not know is simple, poor marketing and poor public perception. Their new products are amazing but I do agree that if blackberry does not turn their public perception around, users will continue to avoid trying their phones and the downward trend will continue. If that happens, it will be ashamed to see such a good product no longer available.

  • Ron Caron

    My question is: Have you ever used a Blackberry Z10, I mean really used it? I can do all of the “work” stuff, plus personal, plus run Android apps like FlipBoard, Google Map with voice navigation – all of it, without so much as a glitch. I just got my hands on iOS 7 and I see that Apple finally introduced some features that BlackBerry has had for quite some time – well done. I know this sounds so much like Novell, but it’s not. It’s people writing and reading intentional bad press that creates the chaos. Few know anything about the BB10 platform. I teach it. I have yet to meet anyone who doesn’t love it once they try it.