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BlackBerry stock on a tear since Chen retirement

The markets have helped, but shares of BlackBerry (BlackBerry Stock Quote, Chart, News, Analysts, Financials TSX:BB) have been better than most in this recent runup.

Shares of BB on the TSX closed December 18 at $5.56, up 17.8 per cent from the October 27 close of $4.72, the last market day before long-time CEO John Chen announced his retirement. The stock had spiked at an intraday high of $5.89 on December 14.

The much hoped for turnaround never happened under Chen. In the most recent quarter under his watch, the company’s Q2 reported September 28, BlackBerry lost $47-million on revenue of $132-million, down 21 per cent from the $168-million it posted in the same period a year prior.

BlackBerry’s Q3, 2023 results are due tomorrow, Wednesday December 20, after market close.

One area in which the company will see immediate saving is executive compensation. New CEO John Giametto, an internal hire who led BlackBerry’s cybersecurity business, will reportedly make just $700,000 a year, plus a stock compensation package.

“I am honoured and excited to lead the next phase of BlackBerry’s evolution as its CEO, Giametto said in a December 11 press release. “BlackBerry’s IoT and cybersecurity businesses have market-leading technology, exceptional teams and large market opportunities. The board and I are fully aligned on the next steps needed to unlock the value within BlackBerry, and work on this effort will proceed at full speed. I look forward to working with the entire team to uphold our legacy of innovation and continue providing exceptional service to our customers as we deliver on our goals.”

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