BlackBerry limited (BB) will be posting its 1st quarterly earnings report for 2025 later today after the stock market closes.

The company’s stock is down 1.12% right now, dropping below the 50-day moving average. Blackberry was benefitting from the meme rally led by the GameStop (GME) stock which also bled over to AMC Entertainment (AMC). Both of those stocks are still elevated from their pre-rally levels. BlackBerry is not.

This stock has dropped from $3.43 at the beginning of the year to its current price of $2.21 per share. We have seen the price spike a few times in 2024, but the stock has been on the decline since the middle of last month. Since the middle of June, the BlackBerry stock has been in sharp decline.

There are concerns that the GME rally has led BlackBerry investors to cut and run, not wanting to wait and see the aftermath of the stock run-up. That rally is not likely to last much longer, especially if it follows a similar trajectory to the rally we saw from the GME stock a few years ago. Blackberry is also on a downward trajectory that is not showing signs of abating.

Expectations for BlackBerry Stock

As the quarterly results come in, the meme stock rally will be mostly forgotten. Investors will be looking at the hard numbers, and those numbers are expected to show a company in decline. BlackBerry briefly traded above $3.80 during the recent rally, but that time has passed. Blackberry never told investors about an ATM share offering, and the company has reported negative earnings of $56 million. Operations cash declined by $15 million and total net income for the company in the last quarter was just $3.0 million.

BlackBerry has had trouble getting its software programs launched, which has held back its earnings and hurt its customer confidence ratings. The company is expected to report about $4 million in earnings for the quarter from its licensing segment, which will likely not be enough to offer positive guidance for the upcoming quarter. All signs point to the wisdom of investors dropping this stock for now.