BlackBerry shares have been plunging from their more than two-year high hit in June after lackluster earnings and competitive threats have raised doubts about prospects for a turnaround at the business software maker.
At Friday's price of about US$8.70, BlackBerry's U.S.-traded shares have lost a quarter of their value since reaching a high of $11.74 on June 1.
The stock had rallied from a low of $6.65 in early March on hopes for the company's QNX industrial operating system for self-driving cars, but investors have started to reassess the years-long effort by BlackBerry to move beyond the smartphones that made its name a household word.
"It's been a turnaround story now for about five years," said Joel Kulina, a technology-sector market maker for Wedbush Securities. "People don’t have the patience."
Chief Executive Officer John Chen has spent years remaking BlackBerry as a software company focused on selling to automakers and other industrial businesses.
Revenue, which peaked at about $20 billion when BlackBerry was dominating the smartphone market, has fallen sharply. Analysts expect it to drop below $1 billion this year for the first time since 2004 and decline again in the following fiscal year.
"We're not going to jump in before we see some signs of turning the corner and establishing meaningful profitability," said wealth manager Chris Zaccarelli, whose Cornerstone Financial Partners in Huntersville, North Carolina, advises on $1.2 billion of assets.
In late June, BlackBerry reported quarterly earnings that missed analysts' forecasts due to an unexpected sales decline, ramping up pressure on the company to meet its goal of boosting software and services revenue by 10 percent to 15 percent this year. BlackBerry declined to comment on the stock price, but QNX manager Grant Courville said it expected to sign deals with at least three major companies to get QNX into self-driving vehicles.
Last year BlackBerry announced a deal for Ford Motor Co. to expand use of QNX, which is used mostly in car information and entertainment systems. The companies have provided few details on the arrangement.
QNX, which is already in most automobile "infotainment" systems, is one product that BlackBerry bulls talked up as the stock rallied earlier this year, saying the plans to expand its use in other parts of vehicles could generate significant revenue.
Yet investors "are figuring out that it isn't a straight path to a pot of gold" for QNX, said CIBC Markets analyst Todd Coupland.
Intel Corp. poses one threat to QNX. The world's No. 1 chip-maker owns a rival operating system and this year paid $15.3 billion to buy Mobileye, a maker of sensors and cameras for self-driving vehicles.
Luxury car-maker Audi is using Intel's system in the safety-related electronic control unit for its 2018 A8 sedan, which will be one of the most advanced self-driving cars on the road.
Toyota Motor Corp. last week joined a self-driving technology alliance whose members include Intel, Ericsson and Denso Corp. but not BlackBerry.
BlackBerry's Courville discounted the threat from Intel. He said QNX was being used in at least six automotive programs based on Intel chips, some for self-driving vehicles.
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh359,000
On sale: now
Company%20Profile
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PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Background: Chemical Weapons
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
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Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
The%20specs
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COMPANY%20PROFILE
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Mercedes V250 Avantgarde specs
Engine: 2.0-litre in-line four-cylinder turbo
Gearbox: 7-speed automatic
Power: 211hp at 5,500rpm
Torque: 350Nm
Fuel economy, combined: 6.0 l/100 km
Price: Dh235,000