BlackBerry Ltd.’s Latest Product Strengthens its Position in the Self-Driving Revolution

BlackBerry Ltd. (TSX:BB)(NYSE:BB) unveiled its latest product on Monday, and it should prove to investors that the company is going to be a big player in the self-driving industry.

The Motley Fool

On Monday, BlackBerry Ltd. (TSX: BB)(NYSE: BB) announced a new product that would combine cybersecurity with self-driving software. The tech company unveiled Jarvis, which will help protect self-driving vehicles from malicious software. Automakers will be able to scan programs to ensure that files are free of code that could compromise a system and make users vulnerable to ransomware and other cyber attacks.

Jarvis will be available on a pay-as-you go model that will make it easy for automakers to use the software on an as-needed basis. The software has already been tested with Tata Motors Limited, and it created a lot of efficiency when testing code. Previously, the company would need to spend a month evaluating code and determining whether it was safe. Under BlackBerry’s new system, that process would take just seven minutes.

BlackBerry continues to make headway in the world of security

Although the company is still reinventing itself as a cybersecurity brand, it has already achieved some big wins. Last year, BlackBerry won a contract with the National Security Agency (NSA) in the U.S. to be their provider of encrypted tools and devices. Earning the trust of the NSA is no small feat and has helped put the company on the map and build its reputation in the world of cybersecurity.

Although BlackBerry still has a long way to go, with sales down more than 80% in the past three years, its recent performance suggests that it is making good strides in transitioning its business model from that of a cellphone maker to a software and service provider.

Self-driving advancements provide lots of growth for the company

At the forefront of BlackBerry’s growth are the developments in the auto industry. As self-driving technologies continue to evolve, BlackBerry will stand to benefit as more manufacturers opt for its QNX software, which has already gained a lot of popularity in the industry.

Most recently, Baidu Inc. (NASDAQ: BIDU), which is working on a driverless system called Apollo, chose to integrate BlackBerry’s software into its security component. While the company may no longer be popular in the cellphone industry, BlackBerry is still a brand name that has become synonymous with security and quality software.

A lot of tech companies are vying to be the preferred software provider of choice for self-driving systems, and BlackBerry has an advantage with its strong reputation in the industry. Even when the company was making cell phones, the safety features that made messaging through BlackBerry devices more secure than on other platforms were what made the products so appealing.

Is BlackBerry a good buy today?

BlackBerry’s stock has gone up more than 80% in the past year, and it recently hit a four-year high. However, there could be much more on the way, especially as the company continues to score big deals and as it further develops its QNX software.

There are many good things that the company is doing today, but investors will need to be patient, as self-driving technologies are still likely many years away from becoming mainstream.

Fool contributor David Jagielski has no position in any of the stocks mentioned. David Gardner owns shares of Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of Baidu and BlackBerry. Baidu and BlackBerry are recommendations of Stock Advisor Canada.

More on Tech Stocks

A person's hand cupped open with a hologram of an AI chatbot above saying Hi, can I help you
Tech Stocks

CGI vs. OpenText: Which Canadian Tech Stock Offers the Better Long-Term Case?

CGI gets my long-term preference, while OpenText offers a recovery case that still needs stronger sales.

Read more »

young adult uses credit card to shop online
Tech Stocks

Is Shopify Stock Too Expensive? A Great Quarter Meets a Sky-High Valuation

Shopify's latest quarter was impressive, but its expensive valuation could make investors think twice before buying.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

BCE Just Reported: What $10,000 Could Earn You in Dividends Today

BCE is yielding a very generous 5.2%, as the company's telecom business improves and long-term investments drive growth.

Read more »

AI image of a face with chips
Tech Stocks

Thomson Reuters Sells the Majority of Its Print Business as It Bets on AI: Can the Suffering Stock Bounce Back?

Learn how Thomson Reuters recovered from a 62% dip and what the future holds for its major revenue segments.

Read more »

woman looks at iPhone
Dividend Stocks

Telus Reset its Dividend: Here’s My Buy, Sell, or Hold Take

Telus’s smaller dividend offers a fresh starting point, but debt reduction has to earn investors’ patience.

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

The TSX Dropped 736 Points Thursday: Here’s Why Long-Term Investors Can Stay Calm

Long-term investors can stay calm in the gyrating waters of the stock market by maintaining portfolio diversification and rebalancing periodically.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

OpenText’s Revenue Fell Again, But Here’s What Investors Could Be Missing

OpenText’s latest results reveal growth beneath falling revenue, with its AI opportunity depending on turning customer demand into stronger earnings.

Read more »

running robot changes direction
Tech Stocks

Lightspeed Stock Drops 14% After Earnings: Here’s Why I’d Buy the Dip

Dax Dasilva explains how better customer deals and AI that tackles merchants’ daily chores could strengthen Lightspeed’s recovery.

Read more »