The Department Of Defence Nuked The Market's Romance With BlackBerry

Blackberry Thorsten HeinsMario Tama/Getty ImagesFormer BlackBerry CEO Thorsten Heins.

It’s been quite a week for BlackBerry.

After spiking up and up since Tuesday, BlackBerry stock closed down 5.4% on Friday.

So what’s going on?

On Tuesday, the stock was screaming and closed up 9% following a statement from the Department of Defence that said the agency approved 80,000 BlackBerry devices. It was good news, especially since BlackBerry has pretty much stopped trying to court normal consumers and is going after enterprise and government customers instead.

But some media reports made it sound like the DoD purchased 80,000 new devices. It did not. It just approved those devices for a new network it’s using. On Thursday, the DoD clarified its statement to The Verge by saying:

Absolutely no new orders have been placed for new BB devices. The DISA press release put out Jan. 16 never alluded to any devices being purchased. The 80,000 BBs and 1,800 non-BB devices referenced in the release are legacy systems already in DoD inventories.

And now that investors realise the government didn’t actually purchase any new BlackBerry devices, the company’s stock is falling again.

Still, it’s up quite a bit overall so far this year.

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