Shares of Research In Motion Ltd (NASDAQ:BBRY) had an interesting session on Thursday as the stock ended on optimistic note after gapped down sharply. The stock ended higher by $1.08 or $7.72 at $15.07, erasing some of its 18% fall in the past four trading sessions.
On Thursday, the stock fell as much 7.50% in opening session on news that the company’s former co-CEO of BlackBerry divested its entire stake in the company. As of December, he had 5% stake in the company. The initial reaction of investors was negative as they believed that he must have some kind insider info about the company know how. But, later on it was realized that the stake sell is nothing to do with insider info as he doesn’t exist within the company.
Shares of BBRY have been showing very high volatility since the beginning of the year on growing excitement about the company’s introduction of Z10. Just a week before from the launch of Z10, the stock made a new 52-week high of $18.32. On the day of Launch, the stock was volatile and lost 25% in a week around the launch day.
However, as soon as the company announced that the launch of Z10 in U.K. and Canadian market was its best ever debut. Investors turned optimistic and the stock started to move higher. Following the news the stock moved back near to its 52-week high.
However, then couple of analysts came forward and made negative comments about the company stating that the company’s Z10 alone is not sufficient to give a turnaround opportunity.
As a result, the stock tumbled about 20%. With Thursday’s gain of 8%, the stock is now above 50-Day MA.
The stock is up about 15% since the launch of Z10, but 18% away from its January’s high of $18.32. Shares of the company are expected to continue with volatility as investors eyeing the company’s launch of Z10 in U.S in coming months.