Seeking Alpha downgraded BlackBerry to a neutral/hold rating following a 200% stock surge since mid-April 2026. Analysts characterized the tripling of the share price as a meme-style rally.
The company’s price-to-sales multiple expanded to more than 12 times expected fiscal year revenues. While BlackBerry recently returned to GAAP profits and saw strong QNX division performance, the valuation outpaced revenue growth.
BlackBerry shares experienced a significant pullback on July 2nd as investors began taking profits. The downgrade follows concerns that the stock's rapid appreciation moved too far too fast.