After many experts had counted out Blackberry (NYSE:BB), this meme stock proved it may still have room to run. The Canada-based software producer recently reported Q1 earnings and demonstrated impressive growth, sending BB stock shooting up by almost 10%. Revenue has jumped from $168 million during the same quarter last year to $373 million, increasing by more than 50%. While it revealed a net loss of $11 million, or 2 cents a share, that’s a significant improvement over the $181 million or 35 cents a share that the company reported last year. What’s clear from this report is that Blackberry’s cybersecurity business is stronger than some experts might have expected. As TipRanks reports:
“The IoT division made a robust $45 million, flaunting a striking 80% gross margin. The cybersecurity segment, on the other hand, scored $93 million, complemented by a 60% gross margin and an ARR of $289 million. This division witnessed its billings surge to $122 million, marking a consistent quarterly rise and a 37% annual growth.”
Is this the start of a turning point for Blackberry? That company has often been dismissed as a meme stock well past its prime. In May 2023, InvestorPlace‘s Louis Navellier described it as an “investor time bomb,” citing the company’s failure to transition to the modern business era. It’s true that the device for which the company is named is reminiscent of days long gone by. However, this earnings beat suggests that the company may still have quite a bit to offer. Yet, institutional investment in Blackberry has been declining steadily, even as BB stock has risen.
Top 5 Investors Betting Big on BB Stock
Data from Whale Wisdom makes it very clear that large-scale investors aren’t embracing BB stock. The number of funds holding it has fallen 4% since Q1, while both the number of 13F shares and percentage ownership are down 16%. New positions have fallen by 17%, and the number of increased positions has declined by 7%. On top of all that, its put/call ratio has increased by 60%, indicating that bearish sentiment toward Blackberry is growing at a steady rate.
Let’s take a look at the top five institutional investors still maintaining positions in BB stock.
- Fifthdelta: 48,179,313 shares. This London-based investment advisory firm recently decreased its position in Blackberry by 9,744,268 shares.
- Fairfax Financial (OTCMKTS:FRFHF): 46,724,700 shares. This Canadian financial holding company has reported no change in its BB stock holdings this year.
- Primecap Management: 35,473,222 shares. This wealth management recently offloaded 503,100 shares of BB stock.
- Vanguard Group: 18,339,447 shares. The mutual fund giant has offloaded 145,902 BB stock shares since Q1.
- Mirae Asset Global Investments: This South Korean firm recently trimmed its Blackberry holdings by 1,022,591 shares.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
