BlackBerry Catches A Break: What's Driving The Stock

| About: BlackBerry Ltd. (BBRY)

On March 13, 2013 BlackBerry (NASDAQ:BBRY) stock jumped up ~8% by market close and an additional ~3% in after hours trading. While high volatility has been a trademark of the stock for a while, this time the gains might just be here to stay. Recent developments are making BlackBerry gain in value as investors begin to be more confident in the release of BlackBerry 10.

1 Million BlackBerries

BlackBerry announced a couple days ago that it had just received "the largest order in history." An "established partner" ordered a whopping 1 million BlackBerry Z10 mobile phones, with BlackBerry set to begin producing them immediately. This is a landmark achievement for BlackBerry. People, including myself, long doubted if BlackBerry 10 was truly as efficient and dynamic as it was supposed to be, but an order of this magnitude shows that there is in fact demand for BlackBerry 10 devices. Obviously the "established partner" is some form of enterprise, and the 1 million BlackBerries that they ordered will help reestablish the corporation's former dominance in the enterprise segment. This is the sign that bulls have been waiting for: BlackBerry is back in business.

India Buying BlackBerry

While India may have seemed like a less than ideal market for the hugely expensive ($800) Z10, the sales numbers tell a different story. BlackBerry expected to run out of its first shipment to the country within 5 days, but a hungry consumer base has made the phone sell out in only 2 days. On news of this BlackBerry revised its sales targets, notching them up by 40%. BlackBerry's regional manager in India also stated that "around 45%" of the people who are buying the BlackBerry Z10 within the country are switching over from other operating systems. These numbers demonstrate strong demand as well as consumers' faith in the BlackBerry 10 OS by switching over from their previous phones. All this bodes very well for BlackBerry and its stock value.

BlackBerry 10 Coming To America

The Z10 had a delayed release here in the States because of longer carrier testing procedures. The time has come for people to finally get their hands on BlackBerry: AT&T and Verizon will both begin selling the phone within the next two weeks. While the United States is a cutthroat mobile phone market, sales data from BlackBerry's release in international markets proves that people are more than willing to try out the BlackBerry 10 operating system. Along with BlackBerry's well-funded marketing campaign, the Z10 might just be the phone on everyone's wish list. Expect good sales domestically to push the stock value higher.


I mentioned in a previous article that BlackBerry had become a more attractive short-term stock because of several factors. With new information it seems that holding on to BlackBerry for the long term may yield profits.

Although BlackBerry's foray into the high-end smartphone market seemed shaky at first, the facts don't lie. People the world over, as well as an undisclosed and very large enterprise customer, want to get their hands on the new Z10. Sales are going well in all the markets that the Z10 has released in, and the United States should be no different. BlackBerry 10 is undeniably gaining traction: going long right now is a safe bet.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.