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$2,000 Invested in This Tech Stock Could Be Worth a Fortune in 10 Years

Canadian stocks enjoyed a sharp rally in April and early May, which has boosted investor sentiment. However, the economic consequences of the COVID-19 lockdowns are beginning to pile up. Provinces across Canada are pursuing a gradual reopening, but the costs of the war against COVID-19 will be felt for years. Today I want to discuss a tech stock that I’m bullish on in the long term.

Instead of sweating out volatility in the near term, investors can lock in a purchase and go in for the long haul. The stock I’m targeting today is BlackBerry (TSX:BB)(NYSE:BB).

Why BlackBerry is a tech stock worth following

BlackBerry was my top TSX tech stock for the month of May. Shares of Blackberry have climbed 14% month over month as of close on May 21. The company released its fourth-quarter and full-year fiscal 2020 results on March 31.

In its Q4 report, the company posted GAAP revenue of $282 million – up 13% from the prior year. CEO John Chen was typically optimistic about BlackBerry’s year. He boasted that the company launched 30 new products in fiscal 2020.

Moreover, its security business and Spark platform for the IoT is poised to drive growth going forward.

For the full year, BlackBerry reported revenue of $1.04 billion, up 15% from fiscal 2019. The company didn’t offer fiscal 2021 guidance due to the destabilizing effects of the COVID-19 pandemic. Still, I’m bullish on this tech stock due to its exposure to several exciting sectors.

A footprint in promising spaces

BlackBerry has established itself as a cyber security leader as it has transformed itself into a software-focused company. Earlier this year, I’d discussed why this tech stock offered nice exposure to this fast-growing sector.

A recent report from Fortune Business Insights projected that the global cyber security market would reach USD $281 billion by 2027. This would represent a CAGR of 12.6% during the forecast period from 2020 to 2027.

The company has also established a foothold in the automated vehicle market. BlackBerry’s QNX software was chosen for 31 design wins in the fourth quarter. However, the COVID-19 pandemic has hurt automakers.

This instability caused BlackBerry to miss out on two large transactions from reliable customers that it said were delayed.

Regardless, the autonomous vehicle software market holds huge promise. A ReportLinker forecast from this year projected that the global autonomous car software market would grow by $3.26 billion from 2020 to 2024, which would represent a compound annual growth rate of 36%. BlackBerry’s presence in these exciting markets is one of the main reasons it is on my radar as a top tech stock.

Should you buy BlackBerry today?

Shares of BlackBerry last possessed a favourable price-to-book value of 1.0. The company had a strong finish to fiscal 2020 even in the face of the COVID-19 crisis. Patient investors should strongly consider this tech stock as a long-term buy.

While we're talking about promising tech stocks . . .

This Tiny TSX Stock Could Be the Next Shopify

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Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and BlackBerry.

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