Please ensure Javascript is enabled for purposes of website accessibility

Why BlackBerry Stock Jumped Again Today

By Chris Neiger - Updated Jan 15, 2021 at 12:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company settled its patent brawl with Facebook.

What happened

Shares of BlackBerry (BB -2.00%) spiked today after Bloomberg reported that the company has settled a yearslong dispute with Facebook over patents. This is the second day in a row that BlackBerry's stock has made significant gains. 

The tech stock was up by as much as 26.8% this morning and had settled to a 12.7% gain as of 12:12 p.m. EST. 

So what 

BlackBerry and Facebook have been fighting since at least 2018, when BlackBerry sued the social media company for allegedly using some of its technology in Facebook's messaging app. Facebook countersued and challenged some of the tech company's patents. 

Red and green line graphs on a dark background.

Image source: Getty Images.

Those suits appear resolved now, as BlackBerry confirmed to Bloomberg that the two companies have reached a settlement, though neither has disclosed any details.

BlackBerry investors were clearly happy with the news today, especially since the company aims to move on from its smartphone business and focus on other technologies. Investors typically like to see lawsuits get resolved because ongoing litigation is costly and brings uncertainty to a company's stock. 

Now what 

With today's share price spike on the heels of yesterday's jump, the stock is up 125% over the past six months. While investors are rightly optimistic that the company has settled its dispute with Facebook, they should also stay focused on how BlackBerry will grow with its new technologies in the coming years.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BlackBerry Stock Quote
$5.89 (-2.00%) $0.12
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
$193.54 (1.18%) $2.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.