Why BlackBerry Ltd. (BB) Went Up on Wednesday

We recently compiled a list of the 10 Companies Jump on Better Earnings, Outlook. In this article, we are going to take a look at where BlackBerry Ltd. (NYSE:BB) stands against the other stocks.

The stock market extended its winning streak on Wednesday, closing firmer as investors seemed to have already priced in the news of tit-for-tat tariffs and uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies traded in line with the broader market sentiment, mostly on the back of record achievements in their latest earnings performance and optimistic outlook guidance.

To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A research engineer surrounded by hardware, demonstrating the company’s secure container offerings.

BlackBerry Ltd. (NYSE:BB)

BlackBerry Ltd. rose for a second day on Wednesday, jumping 9.96 percent to close at $5.08 each as investors took heart from news that it successfully divested its money-losing Cylance cybersecurity business to Arctic Wolf.

In a statement, BlackBerry CEO John Giamatteo expressed satisfaction with the closing of the deal, saying that BlackBerry will continue to engage with Arctic Wolf as a customer and reseller and will remain a shareholder of the company.

BlackBerry acquired Cylance for $1.4 billion in 2019 and sold it to Arctic Wolf for only a fraction of its cost—$160 million.

Once a dominant player in the smartphone market, BlackBerry switched its focus to software for devices and autonomous vehicles.

In October last year, it told investors that the Cylance unit was expected to lose $51 million in 2024.

Overall BB ranks 7th on our list of Wednesday’s top gainers. While we acknowledge the potential of BB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.