Why BlackBerry Limited Shares Jumped

Is this meaningful? Or just another movement?

Jan 21, 2014 at 8:29PM

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 Limited (NASDAQ:BBRY) were racing higher today, gaining as much as 12% and finishing up 9% after the Department of Defense released a report showing BlackBerrys were still the phone of choice at the Pentagon.

So what: The DoD said it "supports 80,000 BlackBerry phones," far ahead of any other device that competes with the lagging smartphone-maker such as the iPhone. The BlackBerry is the top choice of defense staffers and others who deal with classified information because of its security features. After the news came out Thursday in a Pentagon press release, shares have soared, gaining 16% in the past two trading sessions.

Now what: That BlackBerry shares would climb so far on what's essentially throwaway news is only proof of the smartphone-maker's struggles as the company has racked up huge operating losses in recent quarters, as high expectations for the BlackBerry10 proved a pipe dream. Showing further evidence of those problems, the Ontario-based company announced plans to divest from the majority of its real estate holdings north of the border, a move that will unload more than 3 million square feet of commercial real estate. Shares gained 1.4% after hours as investors may have seen it unlocking value, but in the long term it further indicates that this is a company in contraction, not expansion.

What's next in the smartphone industry
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Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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