On June 28, Blackberry reported a disappointing quarterly statement: a net loss of $84 million. This was much lower than most Wall Street expectations, which expected the stock to turn out a gain in its first full quarter with BB10 on the market. This news sent the stock plummeting nearly 30% in premarket hours, but it paired off those losses by 5% after the market opening. Sadly for Blackberry, their reports have let down many large institutional holders. With a volume of over 100 million shares today (triple the daily average), the stock was one of the largest movers on the Nasdaq.
First, this indicates that the BB10 devices might not be doing as well as everyone had hoped. Because the company didn't provide the details in the number of BB10 devices sold, we can only assume they aren't fairing well or there has been a drop in the number of BB7 devices sold. Even though the revenue has increased this quarter in relation to the same quarter last year, they still were not able to turn a profit despite cost cutting measures. In the previous quarter, Blackberry had a surprise profit which may mean that the company's profit margin isn't as high on the new hardware.
CEO Thorsten Heins has indicated that Blackberry will not make new Playbook tablets running on the new operating system, but will continue to manufacture old ones. This may be a smart move on their part considering the company entered the tablet market too late, resulting in a $500 million loss in previous years. Another piece of news that may scare away investors is the fact that the company also expects a loss in the next quarter. The new line of soon-to-be-released cheaper devices may help the company stay afloat temporarily, but the future of Blackberry doesn't look bright.
On a cheerier note, Noodles and Co. soared nearly 100% in its stock market debut. The company runs a chain of restaurants, many of which are franchised. However, most of the company's revenue comes from the 300 or so company owned restaurants. With its current balance sheet and growth rate, this company's stock has the potential to rise into the hundreds. Its executive board has also proven successful, many of which have worked high up in companies such as McDonalds and Chipotle.
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