BlackBerry Q4 2013 Earnings
BlackBerry Limited revenue as well as profit fell for Q4 2013 as the company is transitions from a smart phone company to a software company. Revenue came in at $976 million and lost $423 million, or 80 cents per share. This is the first time since 2007 revenues have been below $1 billion. Sales are obviously suffering due to the stiff competition from the iPhone and Android devices.
Initial Market Reaction
Blackberry, or BBRY, initially gapped up and traded as high as $9.64 per share. At the peak it was up 6.5% on the session. Prices quickly sold off in late morning, and BBRY is currently trading near $9.00 per share which is actually below yesterday’s close. The $9.00 level is an incredibly important technical level and a break below could cause prices to plunge.
Technical Analysis Points to $7.40 per Share
On the daily chart of BBRY, there is a two month wide head and shoulders pattern. This is a very bearish pattern that will be triggered if $9.00 fails to hold and it has a target price of $7.40 per share. If prices close below $9.00 per share today, then investors and traders should expect the stock to plunge about 17% over the coming days/weeks. Given the strong volume today, it appears as though the breakdown will begin today.