BlackBerry shares rise after Foxconn deal despite massive $4.4 billion Q3 loss

Washington, Dec. 21: BlackBerry shares reportedly went up by more than 15 percent despite the company recording a massive 4.4 billion loss in the third-quarter due to heavy writedowns and impairment charges as the company struggles to hold its position in the market ruled by Apple and Google.

The sinking smartphone company’s revenue went down by more than 50 percent, compared to the same period last year.

However, the company shares rebounded which can be attributed to the fact that a significant number of its shares are in the hands of short sellers who try to profit off the stock’s declining price, Mashable reports.

Meanwhile, a stronger reason for the share price rising up is BlackBerry’s decision to enter a five-year deal with Foxconn to manufacture phones in emerging markets like Indonesia.

One analyst said that BlackBerry knows they can’t beat Samsung or Apple, yet there’s an opportunity for them to still profitably sell smartphones in the global market.

The report further said that investors have been pleased with the BlackBerry’s growing cash pile following a 1 billion dollar investment from Fairfax Financial Holdings and others. (ANI)