BlackBerry Shares Rise as Investors Buy Turnaround PlanSarah Rabil
BlackBerry Ltd. rose to the highest price since before a sale of the struggling smartphone maker fell apart last year, in a sign that investors are starting to buy into Chief Executive Officer John Chen’s turnaround plan.
The stock climbed 5.7 percent to $11.21 today in New York, the highest closing price since Sept. 9. BlackBerry has now gained 35 percent since reporting better-than-expected earnings less than three weeks ago.
BlackBerry’s new boss said last month that he’s stabilized the company enough to now set his sights on revenue growth next year. The Waterloo, Ontario-based company reported a narrower loss in the fiscal fourth quarter than analysts estimated as Chen cuts costs, sells assets and preserves cash. Chen took the helm in November after a failed process to sell BlackBerry.
More than 38 million shares traded hands today, almost three times the average daily volume in the last three months, data compiled by Bloomberg show.