BlackBerry's stock plummeted by 6.30% on Thursday morning, despite the security-software company reporting a narrower loss and revenue that beat analysts' estimates for the fiscal second quarter.
While BlackBerry's revenue rose 10% year-over-year to $145 million, surpassing expectations of $140.3 million, and the company raised its guidance for the fiscal year, these positive results were not enough to satisfy investors' expectations. BlackBerry reported a loss for the quarter, though it narrowed from a year earlier.
BlackBerry has been transitioning its business away from hardware and towards cybersecurity software and services. However, the company still faces challenges in this highly competitive market. Some analysts remain skeptical about BlackBerry's ability to sustain long-term growth and profitability, which may have contributed to the stock's sell-off following the earnings report.
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