BlackBerry's BBM Value Could Disappoint Investors Big Time

Everyone knows BlackBerry (NASDAQ: BBRY  ) is in dire need of a sugar daddy. However, the investing community remains sharply divided about just how much the struggling Canadian smartphone maker is actually worth.

Analyst estimates vary to a nearly comical degree, ranging from $5 on the low end, to as high as $20. And, while the company's true worth its obviously up for debate, most agree the company still has several truly valuable assets under its umbrella, one of which is its BBM messaging franchise. Many believe the BBM could, and should, be spun out as an independent company, as the mobile messaging space, in general, is still ripe for consolidation. But, as is the case with BlackBerry as a whole, just how much a BBM spin-off would fetch BlackBerry shareholders is anyone's guess. 

One bold analyst recently made waves, claiming BBM is worth at least $5 a share, or roughly half of BlackBerry's current share price. In this video, tech and telecom analyst Andrew Tonner puts this valuation for BBM under the microscope for review.

BlackBerry remains on the outside looking in as the trillion-dollar revolution in mobile continues to take off. However, that isn't to say there isn't money to be made in this space, as many of the biggest tech titans clash for the future fortune at stake. To find out which of these giants is set to dominate the next decade, we've created a free report called, "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!


Read/Post Comments (9) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On September 13, 2013, at 7:31 PM, gettmoney wrote:

    Prove it.. want you can't, just another fool speculating

  • Report this Comment On September 13, 2013, at 8:35 PM, HelpIsHere wrote:

    Deuchebag Andrew!!!

  • Report this Comment On September 13, 2013, at 9:05 PM, CZZZZZZ wrote:

    re: Could Disappoint Investors Big Time

    BBM sends 10 billion messages a day while the industry leader sends 30 billion....and you think this will be disappointing when Android and iPhone users join in?

    Its going to pass Whatsapp within 1 year. How you can put a negative slant on an already popular service that everyone knows its about to explode in popularity defies logic....typical BB trashing baloney we've been hearing for 2 years now.

  • Report this Comment On September 13, 2013, at 10:20 PM, criticalfool wrote:

    A no good loser sitting in his mother's basement making stupid videos and getting paid per click making statements about stuff that bhe does not understand. I bet if this guy even knows 1% of what goes into a service like BBM.

  • Report this Comment On September 14, 2013, at 2:22 PM, Z10 wrote:

    I'm glad to be the one or two percent elite that own Blackberry Z10. Its the most secure best o/s and best ui phone on the planet. Droid and iphones are for serfs and peasants. I laugh at the herd using their iphone and droid leases the elite use to keep an eye on their pets.

  • Report this Comment On September 15, 2013, at 11:46 PM, Z10Rocks wrote:

    I had an iPhone but it is now collecting dust. I have moved on to a Z10 (at first reluctantly) but now I can see what all the hype was about. This is an amazing phone. Many of my friends are still on iPhones and Androids, but there is definitely a sense of excitement around bbm. People that had a BB miss it!

    I think what a lot of investors don't realize is that a lot of people are familiar with blackberry, liked the bbm but could not stand the older hardware / OS and the lack of apps, especially with IOS and Android there. I really believe that there will be a lot of interest in BBM - it is the best and now everyone in the world with a smartphone (minus windows) can have it. This is really exciting times!

  • Report this Comment On September 16, 2013, at 1:09 PM, magnaman1969 wrote:

    jjj

  • Report this Comment On September 16, 2013, at 1:12 PM, magnaman1969 wrote:

    Current BBM users are at 66 million. If each of them invites just 5 friends to BBM from android/iOS that puts BBM ast 330 Million users...abot 100 million ahead of the current leader.

    BBM has the option to introdiuce BBM Channels as an opportunity to become a hybrid messaging AND Social Media play.

    Phase one is get the user base...phase two is monetize.

    Eyeballs= revenue in mobile...5 bucks is a cheap valuation....and Tooner is a tool.

  • Report this Comment On September 17, 2013, at 10:02 AM, infektu wrote:

    ... but then again, it might not.

    Great insight!

    The price might go down, but then again, it might go up. Pay me 1c per hit.

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