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 (NASDAQ: BBRY  ) have soared today by as much as 13% on U.S. availability and acquisition rumors.

So what: No. 2 domestic carrier AT&T (NYSE: 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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Comments from our Foolish Readers

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  • Report this Comment On March 11, 2013, at 4:08 PM, Arthur1111 wrote:

    Blackberry surge has nothing to do with the Lenovo story. This is old news and BlackBerry is not for sale. BlackBerry may license the BB10 os. Candidates are likely to be Lenovo and Sony. I said this many times.

    The reason for the surge is the US launch finally coming to reality. Investors were looking for actual date and they got it.

  • Report this Comment On March 11, 2013, at 4:20 PM, Oril wrote:

    If you are referring to this article it looks like it is just another movement

    . A bowel movement on your part.

    Surely you could have done better today then regurgitate that old Lenovo takeover crap.

    Now that you mention it the shorts likely had another movement today.

    In their pants.

  • Report this Comment On March 11, 2013, at 4:27 PM, magnaman1969 wrote:

    And if we listened to you idiots we would have sold...

    Morons....

  • Report this Comment On March 11, 2013, at 6:43 PM, NotAfoolHere wrote:

    That right follow the fools, sell BBRY today because you should have bought Apple at 700.00

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