Yahoo Finance BlackBerry (TSE:BB shareholders incur further losses as stock declines 3.4% this week, taking five-year losses to 57%
We think intelligent long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. For example the BlackBerry Limited (TSE:BB) share price dropped 57% over five years. That's not a lot of fun for true believers. And it's not just long term holders hurting, because the stock is down 46% in the last year. Unfortunately the share price momentum is still quite negative, with prices down 20% in thirty days. Importantly, this could be a market reaction to the recently released financial results. You can check out the latest numbers in our company report.
After losing 3.4% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
See our latest analysis for BlackBerry
BlackBerry isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over half a decade BlackBerry reduced its trailing twelve month revenue by 5.4% for each year. While far from catastrophic that is not good. The share price decline of 9% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. We don't think anyone is rushing to buy this stock. Not that many investors like to invest in companies that are losing money and not growing revenue.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on BlackBerry's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We regret to report that BlackBerry shareholders are down 46% for the year. Unfortunately, that's worse than the broader market decline of 4.0%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand BlackBerry better, we need to consider many other factors. Even so, be aware that BlackBerry is showing 1 warning sign in our investment analysis , you should know about...
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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