Why BlackBerry Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of BlackBerry have soared today by as much as 13% on U.S. availability and acquisition rumors.
So what: No. 2 domestic carrier AT&T announced that the BlackBerry Z10 will launch on March 22 at $199 on contract, with pre-sales beginning tomorrow. In an interview with French publication Les Echos, Lenovo CEO Yang Yanqing stoked speculation of the PC giant acquiring BlackBerry, saying it "could perhaps make sense."
Now what: One of the reasons investors were initially disappointed with BlackBerry 10's launch in January was that U.S. availability was being delayed until March due to carrier testing. Ma Bell's announcement is the first firm date when the Z10 will be available in the U.S. Lenovo doesn't currently have a strong position in the smartphone market, and Yang's comments were about the company possibly buying its way in, much like it did with PCs. Jefferies analyst Peter Misek, who is bullish on BlackBerry, believes an acquisition is unlikely.
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The article Why BlackBerry Shares Soared originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.