Morgan Stanley (NYSE:MS) Gets Harsh With BlackBerry (NASDAQ:BBRY)


BlackBerry (NASDAQ:BBRY) stocks have suffered by quite a scale due to fierce criticism. According to latest news, James Faucette, an analyst at Morgan Stanley (NYSE:MS) has denigrated the tech company, stating that it is unlikely to meet targets for the sale of its devices. This has resulted in a slump of 4.7%.

Even with the Equal-Weight rating has been downgraded to Underweight, Faucette went on to place the company’s target price at $7, which is 35% below the Tuesday’s closing price worth $10.76. In a statement, Faucette wrote that in June of the current fiscal year, he felt that the market underestimated the company’s capability to extenuate collective losses. However, it now seems that market is too optimistic and harboring a belief that BlackBerry (NASDAQ:BBRY) will find the scenario favorable for the sale of its software and the newly developed messaging service.

Faucette further states that it was assumed that BlackBerry (NASDAQ:BBRY)’s software apps will generate revenue worth $250 million and another $100 million can be achieved from its messaging service for the fiscal 2016. These targets match closely with the ones set by the company’s CEO. Based on these assumptions, regardless of how close they are to reality, BlackBerry (NASDAQ:BBRY) is expected to succeed in holding its existing enterprise subscriber base, but it can increase its consumer base by many folds.

These statements make situation look bleak for BlackBerry (NASDAQ:BBRY) in the market. The dip in the stock prices might have these reports to blame alone. If one looks into the history of BlackBerry (NASDAQ:BBRY) enterprise, the company seems to have held up its head above the waters since its entry into the tech market.

BlackBerry (NASDAQ:BBRY)’s main tech competitors are Android and Apple (NASDAQ:APPL) iPhones. BlackBerry (NASDAQ:BBRY) may have struggled to engage in competition with both, however, it has never lagged behind than either of these and has always managed to give stiff race to both smartphone technologies. Its success is evident in the fact that it may have suffered loss of shares on global level, its subscribers base continue to grow with every passing day. The Android and Apple (NASDAQ:APPL)’s entrance into the market may have forced BlackBerry (NASDAQ:BBRY) to share its territory, its consumer base still holds.

In order to judge how much the Android and iPhone has hit BlackBerry (NASDAQ:BBRY), lets observe the figures. BlackBerry (NASDAQ:BBRY) has a subscriber base of $10.5 million users for the fiscal period in which iPhone was first launched. When Android entered the market in 2008, the volume of BlackBerry (NASDAQ:BBRY) subscribers had gone up to 21 million. The company hit the 78 million subscriber base on global level, in the period ending June 28, 2012. However, the subscribers’ figure for Q1 2014 has gone down to 72 million, which could form into a steady trend, unless o BlackBerry (NASDAQ:BBRY) works on turning with the tide and taking criticism onboard.

BlackBerry (NASDAQ:BBRY) stock has gone up 45% year to date. Apple (NASDAQ:APPL)’s stock went up 44%. BlackBerry (NASDAQ:BBRY) stock closed at $10.76 on Tuesday.