BlackBerry Stock Price Decline
BlackBerry's stock has declined by ~45% over the last six months to levels of around $5 per share. There are a couple of trends driving the decline.Firstly, the company's Cylance business - which it acquired for $1.4 billion - is underperforming, with revenues standing at $67 million over the first half of the fiscal year. For perspective, Cylance had revenues of ~$130 million in CY'18, posting revenue growth of 90%, and BlackBerry had guided a growth of as much as 30%, implying that BlackBerry is not able to scale-up the business. Moreover, over Q2, the company missed earnings estimates and also cut the top-end of its revenue forecast for the full year.That said, we believe that the company could be undervalued at these levels, making it an attractive acquisition target.