BlackBerry share price: Phone maker’s future questioned by Pfizer

on Nov 15, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Friday, November 15: The world’s largest biopharmaceutical company Pfizer (NYSE:PFE) has cast a fresh shadow of doubt over BlackBerry’s (NASDAQ:BBRY) prospects. Citing concerns that the mobile technology company might not be around in the future, or may have service interrupted, the US-based drugmaker has reportedly said that it would ditch BlackBerry’s phones.

Yesterday, Bloomberg reported that Pfizer employees had been advised to abandon their Blackberry devices. The management of Pfizer has taken this step in response to the tech company’s market share declining at a rapid rate amid plans to sell the business.
In a memo obtained by Bloomberg, Pfizer told employees: “In response to declining sales, the company is in a volatile state. We recommend that BlackBerry clients use their BlackBerry devices and plan to migrate to a new device at normal contract expiration.”

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Pfizer, which had 92,000 employees as of its last annual filing, further revealed in the memo that contingency plans have been developed in case BlackBerry shuts down or is unable to provide services. The information has not been confirmed. When contacted by Bloomberg, the biopharmaceutical company’ spokeswoman, Joan Campion, said: “We never go out in the media and talk about our service providers.”

Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
**BlackBerry’s woes**
Once a dominant player in the mobile phone industry, BlackBerry has been losing market share to rivals, mainly Apple’s iPhone, Google’s Android-powered devices and Nokia’s Windows Phone. In the second quarter, the Canada-based company’s loss widened to $965 million from $235 million a year earlier, hit by charges related to its latest offering Z10 (BlackBerry share price: Company posts deep quarterly loss). The new operating system, was meant to fuel a comeback, but drew a tepid response from buyers and BlackBerry had to write off almost $1 billion in unsold inventory.

In addition, a $4.7 billion takeover bid for BlackBerry was scrapped this month, prompting a shakeup at the company. BlackBerry appointed former Sybase CEO John Chen as the head of the tech group and raised $1 billion in convertible debt to help bolster its financial state.
In a blog post on November 13, CEO Chen tried to defend the company’s credentials: “We also want our customers to know that BlackBerry has significant financial strength for the long-haul. I am confident that we will rebuild BlackBerry for the benefit of all of our constituencies.”

**Share price on the low**
While the Pfizer share price was 0.41 percent higher at end of yesterday’s New York trading session, BlackBerry fell 0.71 percent, extending the stock’s year-to-date slump to 45.49 percent (BlackBerry share price collapses).
According to AnalystRatingsNetwork data, 12 research analysts have a ‘sell’ rating for the stock, 26 have a ‘hold’ rating, three have a ‘buy’ rating and one has a ‘strong buy’ rating. The stock’s average rating is ‘hold’ with a consensus price target of $8.40.
**As of Thursday, November 14, buy BlackBerry shares at $6.46.**
**As of Thursday, November 14, sell BlackBerry shares at $6.40.**
**As of Thursday, November 14, buy Pfizer shares at $32.10.**
**As of Thursday, November 14, sell Pfizer shares at $30.33.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.
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