Value Investors: Double Your Money With Canada’s Original Tech Giant

There are so many positive features regarding BlackBerry Ltd. (TSX:BB)(NYSE:BB) and its stock. Nevertheless, the former tech giant’s shares have languished for years. Is this stock a buy, or is it time to walk away?

| More on:
Business success with growing, rising charts and businessman in background

Image source: Getty Images

Is BlackBerry (TSX:BB)(NYSE:BB), Canada’s original tech superstar, a good buy at these levels? This former Canadian superstar’s stock was smashed almost a decade ago and has never recovered to its former glory. In spite of all the positive aspects this stock has to offer, it simply cannot seem to gain any ground. 

This stock has languished at its lows for almost a decade now. Every time it seems to gain some ground, it gets hammered back to Earth. It has been a soul-crushing investment. At this point, is BlackBerry a good buy, or is it dead money?

The value stock with everything going for it

Honestly, if ever there was a value stock that seems like it should be a good buy, BlackBerry is the one. It is a tech stock operating in growth areas. It has a solid balance sheet in a net cash position. There is everything to like about this company, but for some reason, it is not performing. This stock has been dead money for years.

I thought when the company started focusing on software services a few years ago, it would have started to make some progress. Just under a decade ago, BlackBerry was getting trounced by the iPhone. It made what was a wise decision for the time and got out of the hardware business.

Instead, BlackBerry decided to focus on cybersecurity. This was the area it had been known for and seemed to be a no-brainer move for BlackBerry. It also began working on Internet of Things (IoT) solutions, a growing industry that has continued to expand. Another move for the company has been to build its driverless car segment. None of these have added up to success for BlackBerry.


BlackBerry has lofty goals that it might be able to accomplish. It aims to be the must-have software provider for endpoints, the end of a communication channel. In other words, BlackBerry wants to be the go-to provider for protecting attacks on computers and other devices. 

So, where is it with this? Well, BlackBerry is actually doing quite well. As of its 2020 annual general meeting, which was just held in June 2020, BlackBerry announced a four-year compound annual growth rate for its revenue of 19.4%.

Its customer base is very impressive. 18 of the G20 governments use its services. It protects over 175 million vehicles, and 77% of fortune 100 financial companies are customers. These are great stats.

Balance sheet strength

Another factor that has helped to strengthen its balance sheet is the fact that it does not pay a dividend. This lack of a payout has helped the company conserve cash during bad times, although it hasn’t been especially comforting for those who have held the stock without any return on their investment over the years.

The bottom line

BlackBerry has a lot going for it. It has great businesses, solid contracts, and a strong financial position. Despite these positive aspects, the stock price has gone nowhere for a decade. It has occasionally drifted higher, only to fall back. The thing is, this is a big ship to turn around that has made a massive move from a hardware phone maker to a cybersecurity company.

It may be a performer someday, especially if it gets traction on its innovative businesses. This company has a lot to offer. It might be a good idea just to put a few dollars into this stock and leave it. Someday, it might take off. From here, you could quite easily double your money. You likely won’t go a lot lower from here. Just be prepared to sit on the shares while you wait for them to move.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Kris Knutson owns shares of Blackberry. The Motley Fool recommends BlackBerry and BlackBerry.

More on Tech Stocks

woman retiree on computer
Tech Stocks

2 Top TSX Growth Stocks to Buy Today and Hold for 10 Years

Given their long-term growth prospects and discounted valuations, these two growth stocks could deliver multi-fold returns in the long run.

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Roaring Stocks to Hold for the Next 20 Years

Sure, there are stocks roaring upwards in the last year, but these three can claim doing it for decades.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

How to Invest in Stock in Canada

Are you looking for growth from our neighbours to the south? This tech stock has it, but how can Canadians…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Better Buy in July: Passive-Income Plays or Growth Stocks?

Will July mark the beginning of an economic recovery? Should you consider investing in passive income or growth stocks ahead…

Read more »

A chip in a circuit board says "AI"
Tech Stocks

This is the Best AI Stock to Buy Right Now

When it comes to AI stocks, Nvidia stock should jump to mind. But don't forget about the absolute dominance of…

Read more »

Choose a path
Tech Stocks

BB Stock’s Dismal Earnings: I’ll Stay Away

BlackBerry Inc (TSX:BB) stock crashed after earnings. Here's why I'm still staying away.

Read more »

sad concerned deep in thought
Tech Stocks

Is the Worst Over for BlackBerry Stock?

BlackBerry stock has been burning investors' money for the last four years. Is the worst over for this stock? Here…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

1 Super Tech Stock (Besides NVIDIA) to Buy Hand Over Fist in 2024

A TSX super tech stock could deliver comparable or far better returns than the AI king across the border.

Read more »