BlackBerry Limited

Stock: BB

Rating: Strong Buy

Author: Waleed M. Tariq

Overview

  • BlackBerry specializes on AI/ML embedded technologies, cybersecurity, endpoint security, encryption, safety, endpoint management, and data privacy.
  • The company has three revenue streams: IoT Solutions, Cybersecurity and Licensing & Others
  • BB stock is almost $9 / share with a market valuation of nearly $5.2 billion.

Bullish

  • The company’s market and pipeline products are competitive advantages.
  • BlackBerry wants to dominate this sector through innovation and collaborations.
  • The company has good long-term prospects

Bearish

  • Volatility in the company’s stock portends calamity.

Top Security Software

  • BlackBerry, which formerly gambled heavily on smartphones, has now shifted its focus to cybersecurity.
  • The global cybersecurity market is predicted to reach $539.78 billion by 2030, a CAGR of 11.6% during 2021-2030.
  • BlackBerry wants to dominate this sector through innovation and collaborations.
  • Cybersecurity has a 59 percent gross margin and $120 M in second-quarter revenue.

BlackBerry Ivy advances IoT

  • The software will be released commercially in February 2022, and installs will commence on 2023 model year automobiles.
  • The program reads, processes, and derives insights from car sensor data locally and on the cloud.
  • In June, BlackBerry said its QNX safety-certified software is in over 195 million vehicles.
  • IVY’s cross-platform solution aims to improve EVs. IVY wants to conquer the auto business using QNX software’s breadth and the EV industry’s expansion.
Image Source: AWS

Growth-fueling

  • The firm’s $770 million in cash will propel its expansion.
  • BlackBerry will sell patents to an unnamed buyer this quarter. BB’s non-core patents are monetized. Growth and stability could be funded.

Conclusion

  • Long-term investors ready to withstand tech’s short-term volatility should buy BlackBerry stock.