Seeking Alpha

BlackBerry (BBRY) slides another 6.2% premarket, with Goldman cutting to...

BlackBerry (BBRY) slides another 6.2% premarket, with Goldman cutting to Hold amid the soft AT&T launch. Citigroup reiterates its $6 price target, saying internal checks show sales of the Z10 have dramatically slowed and carriers have shifted promotions to other products. "Shockingly low support by AT&T with extremely limited signage ... most AT&T employees (have) not even been trained on the device."
Comments (31)
  • Looks like someone know that the results on 28th shall come out far BETTER than the analyst estimates so I guess we are seeing this bashing and accumulation at lower levels via this bashing. How on earth can one say that sales are weak just in a matter of 3 days? We can't compare Z10 with an Iphone sales which are always hyped. Z10 and BB don't need blockbuster sales to prove that they are successful. Even if they can do 3-5 Million Z10 a quarter that shall give them a LOT of confidence and good marketing for the upcoming devices based on BB10. Also this is JUST on the basis of checks from ONLY AT&T who hardly cares how BB does. The real test is Verizon and T-Mobile. It seems they are a lot more keen to push Blackberry sales. Some analyst are talking of $6-$7. They should be asked to show their short portfolio or options portfolio which would be loaded with Puts. They are just rotten pigs who want to make money on this company who is doing its best to grow stronger. Hate these bashers! GO BB we are with you!!
    25 Mar 2013, 08:19 AM Reply Like
  • "Extremely" limited signage? Aren't these companies too extreme on there predictions?
    I am pretty confident that most people do there DD before signing up and buying any new smart phone regardless of make. I am also confident most if not all past BlackBerry users that have gone with other mobile platforms know the unique BlackBerry experience and will want to try out the new Z10. The success rate from people trying out the Z10 to having people sign up for one is outstanding.
    We've seen proof of this in the UK, India and Canada just to name a few.
    In a few days we will all see the numbers. Until then, these analysts need to calm down, because posting NONE-Factual information puts unessesary negative strain on the share price.
    25 Mar 2013, 08:45 AM Reply Like
  • AT&T screwed the launch. Untrained staff. No demo models on floor. Poor signage. Its a mess.


    Some stores are trained with good signage though.


    Why AT&T rushed this is beyond me.
    25 Mar 2013, 09:00 AM Reply Like
  • of course poor handling by AT&T must be the explanation for low sales.


    it couldn't be that people just don't want a blackberry anymore.
    25 Mar 2013, 12:21 PM Reply Like
  • "Shockingly low support by AT&T with extremely limited signage ... most AT&T employees (have) not even been trained on the device."


    Yup, the words "shockingly" and "extremely" sound fishy here. Analysts are rarely right anyway.
    25 Mar 2013, 01:02 PM Reply Like
  • Here comes the truth... They havent got a chance.
    25 Mar 2013, 08:46 AM Reply Like
  • This is nothing more then an attempt by market manipulators to push the price of BBRY down so they can either buy it at a low price and then sell it at a much higher price, and/or an attempt by short sellers to cover their naked short sales at a much lower price then they shorted it at.


    25 Mar 2013, 08:49 AM Reply Like
  • +1
    25 Mar 2013, 09:13 AM Reply Like
  • Because Im frightened of a ravenous gang of BB users showing up outside my front door with pitchforks and torches a lit demanding my head...... jk of course but hoping the allegory doesn't escape you.
    25 Mar 2013, 09:00 AM Reply Like
  • Now down like 3.5%


    Go doen though. Call options can only get cheaper.
    25 Mar 2013, 09:01 AM Reply Like
  • Not sure why AT&T was first to release the Z10 in the US?? They have always been a huge Apple booster (iPhone exclusivity until 2011, 85% of all smartphones sold in Q412 were iPhone, major contractual obligations to sell iPhone). Not surprising that their Z10 launch was lack-lustre!!


    Wait until Verizon and T-mobile launches, much bigger marketing push for Z10/Q10. Combined they will sell 90% of all BB10 devices in US and take share from AT&T!!
    25 Mar 2013, 09:01 AM Reply Like
  • Reminds me of Nokia's Lumia 920. Basically the same thing happened to Nokia. AT&T was the exclusive U.S. carrier of the 920. Very little marketing on television and in-store. Staff was not trained. The 920 sold poorly at AT&T but sold much better everywhere else in the world. Nokia received the same type of negative/dooms day reports BB is getting. Nokia is going BK... Nokia will run out of cash. CNBC made fun of the 920 as they are with the Z10. See a pattern here?


    25 Mar 2013, 12:02 PM Reply Like
  • Yeah, and most doomsday news turn out wrong. I am still waiting for the end of the world, as the Mayans predicted.
    25 Mar 2013, 01:06 PM Reply Like
  • AT&T is painting itself in a corner...


    Screwing WP (Nokia) and now BB manufacturers with these tactics is not going to help AT&T in the long run. Also, Samsung (Android) has little interest in dealing with them, leaving AT&T little option than to be locked into Apple iPhone for a long while...not good prospects for their future!!!
    25 Mar 2013, 01:50 PM Reply Like
  • When someone is overcompensating, they boast. When someone has an agenda, they exaggerate: Citi's $6 target is well-below book, which means they must hold much of the 147 million short position in (BBRY).


    Looks like long-investors awaiting 28/3 can buy in to build a position...and to squeeze those shorts.


    Long-term, if American's realize AT&T has an agenda (and a contract) to push out iPhone 5, it could face a backlash. So could Apple.
    25 Mar 2013, 09:46 AM Reply Like
  • Chris, IMO, this was a deliberate attempt by AT&T to stir the teapot a bit. It is unfathomable that a service provider launches a device with no in store training or advertising in place!


    The same story repeated at Best Buy as well!


    The only saving grace was that the sales people were aware that $BBRY had introduced a Z10 and that they are selling one. Some of them were not even aware that they had in their inventory.
    25 Mar 2013, 10:08 AM Reply Like
  • I was told by the manager of an AT&T close to me that training was conducted via on-line. How long was the training? I don't know. Was it mandatory for ALL employees? Don't know. The manager said that BB people only went to the bigger cities to train in person. At that AT&T store- which visited on Friday- I noticed no extra posters/signs for anyone else. BB's Z10 poster was the same as Apples: about 18 inches high by 3 feet long- approximately.
    25 Mar 2013, 12:12 PM Reply Like
  • Do you think Americans are sophisticated enough to hold that against AT&T (if that's what is happening)?
    21 Jun 2013, 01:39 AM Reply Like
  • just reporting the numbers from my own tiny sampling of stores, and this is the point where I'm going to stop today. I draw no conclusions, nor do I make any predictions.


    The above statement the OP made is the crux of the reaction from Friday's article.... Why bother...if it is a "tiny sampling" what is the point or writing an article... it proves nothing... inflames passions and as the author found out BB is a passionate crowd... the main reason being is that the Media has spent the last number of years "dumping" all over RIM/BB... At some point you have to move past the "sins" of the past and start looking at the present....
    25 Mar 2013, 09:53 AM Reply Like
  • Blackberry's key clients are corporate. Corporate clients are not early adopters. Many may not have upgraded their BB servers to BB10. Blackberry is at least competitive in the consumer BYOD market where they were not before. Having said that, I expect my VZW BB Z10 on Friday, and I will have to connect using BYOD options to my company's mail server. Company is not yet offering BB10's internally. Amazing how analysts are trying to read instant tea leaves.
    25 Mar 2013, 09:54 AM Reply Like
  • Question that must be asked: is AT&T interested in having Z10 succeed, or are they instead focused on trying to reduce their bloated inventories of iPhones which are not selling? AT&T is whom Goldman should look at rather than BBRY in this story. But then again, do analysts ever do their homework before coming out with their opinions?
    25 Mar 2013, 11:05 AM Reply Like
  • iphones are not selling? where you from?
    25 Mar 2013, 12:23 PM Reply Like
  • (BBRY) fans have taken advantage of (AAPL)'s recent fall to justify that (BBRY) will outsell (AAPL). Best to take a neutral stance. If you can give me numbers with a link from a credible source, I'll believe you. Anything less is noise. (BBRY) will probably survive. (AAPL) will survive. The only thing that may change is competition, but (AAPL) has a lot of cash for that.
    25 Mar 2013, 01:16 PM Reply Like
  • I wonder if these strong believers and brave souls will come out and say just how many
    of these shares they really still hold...
    25 Mar 2013, 12:56 PM Reply Like
  • If this helps any bit, I talked to a Verizon person and they received training weeks ahead. She said, they get good incentives to push the new blackberry. We will see.
    25 Mar 2013, 01:01 PM Reply Like
  • What did I say? $BBRY is dead, ticker of the past. Heard a good quote yesterday after seeing their Z-10 commercial: "Wait, they still MAKE things? BLACKBERRY?"
    25 Mar 2013, 01:10 PM Reply Like
  • I went into our local AT&T store and found the new Z10 in the far corner of the store, tucked in a narrow space against the wall. I had to ask the sales person where to find it. He was using one as his personal phone and excited about its features. I saw no signage. After doing my own inspection I decided to wait for the querty model, which BlackBerry should have also introduced at the same time. A strategic error in my opinion.
    25 Mar 2013, 01:38 PM Reply Like
  • User - I agree, it was an error not to release both models at the same time. I know people who may get the Z10 - but are waiting to check out the Q10 first just to confirm.


    I really like BBRY - and think the stock could go higher. But, they have executed very poorly in the past several years. The team has changed - and I do have more faith in the new team, but to really make a great comeback they need to execute perfectly. They're starting to get rolling. I just constantly am worried that they're gonna make a mistake. Ugh.
    25 Mar 2013, 09:03 PM Reply Like
  • An amazing amount of emphasis remains focused upon the US smartphone market, yet the earnings report will not account for US sales. BlackBerry will not have an obligation to indicate US sales volumes until the next (following) quarterly report. This report will only indicate the launch results in other countries.
    25 Mar 2013, 05:45 PM Reply Like
  • Herr Hansa, the guidance part will be crucial and will speak for itself. I am sure the analyst will press $BBRY to give some color on how the US sales are shaping up and I think $BBRY will share an upbeat response. I see Z10 as an icing on the cake until the Q10 is introduced. Z10 is essentially for people like me and my wife who are switching over from the (Lumia 920, and iPhone) - my wife is considering for going with the Q10 though.
    25 Mar 2013, 09:40 PM Reply Like
  • BlackBerry do not need to offer much guidance, and there has been a growing trend amongst companies to offer very little information in the way of guidance. They could leave the analysts hanging.


    At this point, with the late start in the US, the Z10 will only have two months of the quarter in which to appear in the next earnings report. I don't think we will have a solid idea until late September earnings reporting, at which point the Q10 will be available, and there should be some lower priced BB10 phones added to the selection. Until that time, I would expect the very high volume of options to remain massive, unless a major short squeeze happens before September.
    25 Mar 2013, 09:50 PM Reply Like
DJIA (DIA) S&P 500 (SPY)