BlackBerry ADR Saw a Massive Increase in Volume and Ulta Beauty Announced a Long-Term Update
BlackBerry is a Canadian tech company that provides security software to governments all around the world. They are also known for their old flip phones, which were used a lot before the iPhone arrived, and they have a market cap of $6.558 billion.
On Tuesday, there was a massive spike in volume for BlackBerry. There were 29.2 million shares of BlackBerry traded on the New York Stock Exchange, and it came because of the stock gaining traction on subreddit Wall Street Bets, where the company’s mentions rose by 139 percent. BlackBerry is one of the stocks they’ve been targeting for a while due to its high short interest, so a spike in volume could lead to some big movements. That is exactly what happened as BlackBerry closed the day at $11.52, up 14.06%.
Ulta is a retail company that sells beauty products at its retail stores across the nation. They also have an online platform that they can sell on, so it gives the Illinois-based company a double headed business that contributes to their market cap of $19.751 billion.
Ulta announced a new long-term update for the company, and some parts were questionable. They forecasted net sales growth of 7 percent annually through 2024, and store sales to increase by 3 to 5 percent annually in the coming years. Earnings are supposed to grow at around 6 to 9 percent, and operating profits will increase by double digits. This all seems good, but it’s a lot more modest than the last long term update they released in 2018, which has investors puzzled as they bought in for future growth. As stocks often price in these future gains, Ulta investors were shocked, and the price fell to $363.35, down 10.58%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.