Why BlackBerry Stock Shot Up Today

BlackBerry Ltd BB shares rose over 6% in the after-hours trading on Wednesday after the company beat quarterly revenue expectations.

What Happened: BlackBerry’s second-quarter earnings per share came in at a negative $0.06, which beat the estimated EPS of negative $0.07.

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The Canadian company’s net loss rose to $144 million from $23 million on a year-over-year basis.

On Wednesday, BlackBerry shares rose 6.17% to $10.15 in the after-hours trading after closing 2.03% higher in the regular session at $9.56.

On a quarterly basis, revenue declined to $175 million from $259 million a year earlier but beat expectations of $163 million.

Why It Matters: BlackBerry is benefitting from an increase in demand for cybersecurity and Internet of Things products as more businesses and governments adopt cloud-based solutions in order to support hybrid working.

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The company has appointed former McAfee Corp. MCFE executive John Giamatteo as the President of its cybersecurity business.

At press time, BlackBerry, which is considered a so-called "meme stock" along with GameStop Corp GME and AMC Entertainment Holdings Inc AMC, received 231 mentions on r/WallStreetBets, a popular Reddit retail investor forum. 

BlackBerry was the third most mentioned name on r/WallStreetBets, as per Quiver Quantitative data.

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Photo: Courtesy of BlackBerry