Although not as parabolic as AMC and GameStop, Blackberry shares were caught up in the recent WallStreetBets saga.
That is to say, a collective group of Reddit users colluded to buy Blackberry shares with the view of pumping its price northwards. This has since resulted in extremely volatile trading conditions on this US-listed stock.
If you’re looking to get in on the action, this guide will explain how to buy Blackberry shares online in the UK.
We also discuss the best online brokers to buy Blackberry shares in the UK and walk you through the process of making an investment today.
- 1 Step 1: Find a UK Stock Broker to Buy Blackberry Shares
- 2 Step 2: Research Blackberry Shares
- 3 Blackberry Share Price History & Market Capitalisation
- 4 Blackberry EPS and P/E Ratio
- 5 Blackberry Shares Dividend Information
- 6 Should I Buy Blackberry Shares?
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Buy Blackberry Shares
- 9 Blackberry Shares Buy or Sell?
- 10 The Verdict?
- 11 eToro – Buy Blackberry Shares With Zero Commission
- 12 FAQs
Your first port of call is to find a trusted UK stock broker that gives you access to the New York Stock Exchange (NYSE).
There are dozens of such providers to choose from – most of which are regulated by the FCA and covered by the FSCS. You do, however, need to explore what fees you will need to pay – as you’ll be purchasing non-UK stocks.
Below we bring you a small selection of UK trading platforms that allow you to easily buy Blackberry shares in a safe and low-cost manner.
1. eToro – Buy Blackberry Shares with 0% Commission
eToro is by far the best option if you’re looking to buy Blackberry shares online in the UK. This top-rated stock broker and stock app gives you access to over 2,400 stocks from 17 international markets, so you can invest in the best shares all on a commission-free basis. This includes the NYSE, meaning you can buy Blackberry shares without needing to pay a premium.
Additionally, eToro does not charge any platform fees – so you can keep hold of your Blackberry shares for as long as you see fit without needing to worry about ongoing charges. We also like the fact that eToro supports fractional stocks. In the case of Blackberry, this means that you can invest in the firm from just $50 upwards – or about £40.
If you’re feeling really bullish on Blackberry shares, eToro also supports leverage of up to 1:5. This means that a £500 account balance would allow you to trade Blackberry shares with up to £2,500. You will, however, be trading CFDs, so you won’t own the underlying shares. Similarly, if you do trade stock CFDs on eToro, you also have the option of short-selling Blackberry. This allows you to benefit from overly volatile market conditions.
In terms of the specifics, eToro is regulated by the FCA – as well as CySEC and ASIC in Cyprus and Australia, respectively. Your funds are also covered by that all-important FSCS scheme. Getting started with an account takes minutes on eToro, and the minimum deposit is just $200. You can deposit funds with a variety of popular UK payment methods – including debit cards, credit cards, bank transfer, and several e-wallets like Paypal and Skrill.
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Fineco Bank – Affordable Share Dealing Platform
Fineco Bank is another great option to consider when looking to buy Blackberry shares online in the UK. The provider is not commission-free like eToro, but prices are competitive nonetheless. For example, UK investors can US-listed stocks like Blackberry from just $3.95. You will pay this fee when you buy Blackberry shares and again when you sell then.
You should, however, bear in mind that a flat commission is not overly condusive for small investments. For example, if you invest just $100 into Blackberry shares, your commission is effectively 3.95% – which is high. Additionally, you also need to factor in the annual maintenance fee that Fineco Bank charges, which stands at 0.25% of your portfolio amount. For example, if you have £1,000 invested, this amounts to a small payment of just £2.50 per year.
Much like eToro, Fineco Bank also supports CFD markets. Once again, this means that you can trade Blackberry shares in a more sophisticated manner – such as applying leverage or short-selling. If you do take the CFD route, Fineco does not charge any commission. Crucially, if you’re looking to build a highly diversified portfolio of assets, Fineco Bank is worth considering. For example, the broker gives you access to dozens of stock markets, and thousands of mutual funds and ETFs.
If you decide to use Fineco Bank to buy Blackberry shares, you will be required to meet a £100 minimum deposit. Before you can do this, you’ll need to upload a couple of verification documents – which can take 1-2 working days for Fineco to validate. Further, we should note that unlike eToro, Fineco Bank does not accept debit/credit card or e-wallet deposits. Instead, you’ll need to perform a traditional bank transfer. Finally, your capital is safe at Fineco Bank – as the platform is regulated by the FCA and covered by the FSCS.
Your money is at risk.
As we briefly noted earlier in this guide, Blackberry was recently caught in the WallStreetBets saga – with the value of its shares increasing a significant amount in a very short period of time.
With this in mind, it is important that you perform lots of research on the fundamentals of Blackberry before you proceed with an investment.
Make no mistake about it – Blackberry is now a shadow of its former self. Not only in terms of losing the vast majority of its market share to Samsung and Apple, but its stock price capitulation over the past decade. For example, at its peak in 2008 – Blackberry shares were worth over $138 each on the NYSE. Over the course of just a few months, the stocks collapsed to just $40-ish.
However, this decline has been a continuous process, with Blackberry shares hitting 52-week lows of $2.70 in March 2020. To put this into perspective, this low represents a stock market decline of over 98%. In other words, had you invested £10,000 into Blackberry at its peak in 2008, your shares would have been worth just £200 come March 2020.
With that being said, Blackberry shares camera to life in early 2021 as per the previously mentioned WallStreetBets saga. As we cover in more detail later, this resulted in the shares going from $6.58 at the start of January to highs of $28 by the end of the month.
This translates into a 1-month stock price increase of over 270%. Naturally, the shares have since cooled-off by some distance. At the time of writing in February 2021, Blackberry shares are worth just over $13. That’s a rapid decline of almost 50% since the $25 peak experienced just a couple of weeks ago.
Blackberry EPS and P/E Ratio
As of Q3 2020, Blackberry reported an EPS of negative $0.23. For those unaware, the EPS illustrates how efficient a company is in terms of earnings flowing down to stockholders. But, if the EPS is negative – like it is with Blackberry, this means the firm is losing money.
Another key accounting ratio to look at is the P/E ratio – which allows us to assess whether a stock is potentially over or undervalued. In the case of Blackberry, the firm has a P/E ratio of over 107 based on current stock prices. To put this into perspective, fellow smartphone maker Samsung is carrying a P/E ratio 76.
As we know, Samsung is a market leader in this space and subsequently – its shares have performed very well in recent years. Based on this comparison, many would argue that Blackberry is heavily overvalued.
If you’re looking to add some dividend stocks to your portfolio – you’ll want to avoid Blackberry. The firm has never paid a quarterly dividend to date, and based on the financial difficulties it continues to have – it’s very unlikely this will change any time soon. As such, the only way that you will be able to make money by buying Blackberry shares is through an increased stock price.
When buying shares in a company, you do so because you believe that it represents a good investment opportunity.
In other words, you believe that the shares will increase in value over the course of time – based on the fundamentals of a strong business model and balance sheet.
With this in mind, the sections below will explore whether or not Blackberry shares meet this strict investment criterion – or if its recent stock price action is merely a case of artificial growth via the WallStreetBets pump.
WallStreetsBet is a sub-Reddit group that sees investors discuss and share trading ideas. More specifically, the group was recently behind a series of stock pumps. This means that collectively, thousands of WallStreetBets group members decided to buy shares in various companies as a means to increase its stock price.
This translates into a stock price pump of over 270%. Crucially, such a parabolic upward swing in Blackberry’s share price had nothing to do with the fundamentals of the company. Instead, this was a result of large waves of Reddit users deciding to buy Blackberry stocks in and around the same time.
If you’re looking at Blackberry as a long-term investment – then you need to put a line through the WallStreetsBet pump. Instead, it’s worth looking at how the stock was performing prior to January 2021.
In the five years prior to the pump, Blackberry shares were price in the $6.50 region. Fast forward five years to January 2021 and the same shares were priced at $6.58.
This means that by holding on to your Blackberry shares for this five years period, your investment would have stayed completely flat. When you consider how much the wider stock market grew during the same period, you would have effectively lost money.
Q3 Figures Were Woeful
Looking at the financials, Blackberry investors do have cause for concern. In its most recent earnings report for Q3 2020 – the firm published revenues $218 million.
In comparison to the same quarter in the previous year, this amounted to a revenue decline of 18%. Perhaps even more alarming is the fact that Blackberry reported net cash generation from operating activities of just $29 million.
Ultimately, stockholders will be keeping a keen eye on the upcoming earnings report to assess whether or nor CEO John Chen has what it takes to turn things around.
Innovation is Key
There is no getting away from the fact that Blackberry’s market share in the smartphone space is now virtually non-existent. This is why innovation and a strong focus on cutting-edge technologies are key. In particular, this is why the firm is now almost exclusively focus on security and IoT (Internet of Things) software.
Additionally, Blackberry also completed a $1.4 billion acquisition of Cylance in 2019 – further expanded its presence in the AI cybersecurity space.
Unfortunately, the acquisition is yet to really drive revenue performance at Blackberry. Nevertheless, another area that the firm is working on is the growth of 5g technology. This is because it is hoped many operating in this sector will look at Blackberry and its suite of innovative security technologies to keep networks safe.
Step 3: Open an Account and Deposit Funds
If you still strongly believe that Blackberry represents a good long-term investment and you have fully considered the risks – the next step is to open an account with your chosen broker.
As we discussed earlier, eToro allows you to buy Blackberry shares online in the UK on a commission-free basis. Plus, the minimum investment is just $50 – so the walkthrough below you show you how to complete the Blackberry stock investment process with eToro.
First and foremost, head over tot he eToro website and begin the account opening process.
This FCA-broker is legally required to collect some information from you – which includes the following:
- Full name
- Home address
- Date of birth
- National insurance number
- Email address
- UK mobile number
- Username and password
You will also need to upload a couple of ID documents:
- Passport or driver’s license
- Recently-issued bank account statement or utility bill
You can upload the above documents at a later date as long as you are not looking to deposit more than $2,500.
You will now need to deposit some funds into your newly created eToro accounts, choosing from one of the following supported payment methods:
- Debit/credit cards
You also deposit funds via a UK bank transfer, but this can take 1-2 days for eToro to process.
Once you have opened an account on eToro and made a deposit, you can then proceed to buy Blackberry shares. To fast-track the process, enter ‘Blackberry’ into the search box and click on the ‘Trade’ button.
Then, an order box will pop-up. Simply enter the amount of Blackberry shares you wish to buy. The minimum is $50, albeit, you can invest any amount of your choosing above this figure – so there’s no need to buy full shares.
Finally, click on ‘Open Trade’ to buy Blackberry shares commission-free!
When looking past the WallStreetBets saga and instead focusing exclusively on the fundamentals – it’s somewhat difficult to make a strong case for Blackberry.
As we covered earlier, the shares remained flat in the five years prior to the WallStreetBets event, with virtually no movement whatsoever. In contrast, the wider markets – and particular other stocks in this sector, have enjoyed an excellent period of growth.
Of course, Blackberry has since moved away from the smartphone arena and is now involved in cutting-edge technologies such as 5g, AI, and cybersecurity. All in all, at current prices, the P/E ratio tells that that Blackberry shares are heavily overvalued.
Buying Blackberry shares online in the UK is a process that can be completed in 10 minutes when using a top-rated stock broker like eToro. Unlike other share dealing sites in the UK arena, the platform does not charge a premium to buy US-listed stocks like Blackberry.
Instead, you can complete the process in a 100% commission-free manner. Best of all, this FCA-regulated broker requires a minimum stake of just $50 on Blackberry shares – so you still get involved without needing to risk a large amount of capital.
67% of retail investor accounts lose money when trading CFDs with this provider.
Does blackberry still make smartphones?
In August 2020, management at Blackberry announced that it would no longer be selling smartphones. With that said, the firm has not been producing its own models since 2016.
What stock exchange are Blackberry shares listed on?
Blackberry is listed on the New York Stock Exchange (NYSE). If you're based in the UK, you can still invest in Blackberry stocks by using a commission-free broker like eToro.
Does BlackBerry stock pay dividends?
No, Blackberry has never paid dividends. This is likely to be the case for the foreseeable future - as per its currency financial standing.
How does BlackBerry make money?
Blackberry no longer generates revenue from the sale of smartphone devices. Instead, it now makes money through intellectual property and software.
How do you short Blackberry?
If you're a retail investor based in the UK and you want to short Blackberry shares because you think they are overvalued, you can do this through a regulated broker that supports CFDs. eToro does just that, and it charges no commissions to trade Blackberry CFD instruments. You do, however, need to keep an eye on overnight financing fees - which are payable for each day that you keep a CFD position open.
Who is the Chief Executive Director of Blackberry?
The current Blackberry CEO is. John S. Chen, who joined the firm in 2013.
Can I invest in Blackberry shares via an ISA or SIPP?
Yes, there are no restrictions on ISAs or SIPPs in terms of buying US-listed stocks like Blackberry.