Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of BlackBerry Limited were racing higher today, gaining as much as 12% and finishing up 9% after the Department of Defense released a report showing BlackBerrys were still the phone of choice at the Pentagon.
So what: The DoD said it "supports 80,000 BlackBerry phones," far ahead of any other device that competes with the lagging smartphone-maker such as the iPhone. The BlackBerry is the top choice of defense staffers and others who deal with classified information because of its security features. After the news came out Thursday in a Pentagon press release, shares have soared, gaining 16% in the past two trading sessions.
Now what: That BlackBerry shares would climb so far on what's essentially throwaway news is only proof of the smartphone-maker's struggles as the company has racked up huge operating losses in recent quarters, as high expectations for the BlackBerry10 proved a pipe dream. Showing further evidence of those problems, the Ontario-based company announced plans to divest from the majority of its real estate holdings north of the border, a move that will unload more than 3 million square feet of commercial real estate. Shares gained 1.4% after hours as investors may have seen it unlocking value, but in the long term it further indicates that this is a company in contraction, not expansion.
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The article Why BlackBerry Limited Shares Jumped originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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