The strategic shift and dramatic restructuring are fueling fears about BlackBerry’s long-term viability. The uncertainty created could easily push more of its telecom partners, business customers and consumers to abandon the platform.
“Perception is nine tenths of reality and if customer and supplier confidence continues to fall it doesn’t matter how much cash they have on the balance sheet. Things could get worse,” said GMP Securities analyst Deepak Kaushal.
At least nine brokerages slashed their price targets on the company’s stock, to as low as $5. BlackBerry’s shares, which fell 17 percent on the Nasdaq on Friday, fell another 5.6 percent to $8.23 before the bell on Monday.