The smartphone pioneer BlackBerry (NYSE:BB) is currently focusing on positioning itself as a significant player in the enterprise software and security solutions space. However, the company’s financials were unimpressive in its last reported quarter. Furthermore, the company’s profit margins are low. BB is set to report its third-quarter performance next week. So, is it wise to scoop BB shares ahead of its earnings release? Read on.Waterloo, Canada-based software company BlackBerry Limited (BB) provides intelligent security software and services to enterprises and governments worldwide. The smartphone pioneer is transitioning itself and venturing into the cybersecurity and automotive software space. The stock appeared on the radars of retail investors on Reddit forums, who pushed BB's share price to sky-high levels earlier this year.
Its price rally was short-lived, however. The stock has slumped 38.9% over the past six months and 19.7% over the past month to close yesterday’s trading session at $8.60. BB shares are trading below their 50-day and 200-day moving average and near their 52-week low. Moreover, BB has a 1.07 beta, indicating high volatility.
BB has updated its BlackBerry® Guard 2.0 solution, its managed detection and response (MDR) service, and announced advancements in next-generation automotive cockpits. BB has also participated in several prominent partnerships with industry leaders to expand its portfolio and strengthen its position in the industry. However, the pandemic-led headwinds had been limiting its prospects. Although its strategic moves could position the company for long-term growth, its bleak profit margins and insufficient cash flows are a concern.