Why BlackBerry Stock Will Make You Rich in 2021

Blackberry Ltd. (TSX:BB)(NYSE:BB) stock has surged again on Monday. This stock has huge potential to richly reward shareholders in the 2020s.

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Last week, I’d discussed why the Canadian technology darling BlackBerry (TSX:BB)(NYSE:BB) was ready for its big moment in 2021. The stock was up over 40% in late-morning trading on January 25. This came after Blackberry and Facebook reached a settlement over patent royalties for undisclosed terms. The Waterloo-based company sued Facebook in 2018. It claimed the social media giant was using its invention in its popular messaging applications.

This stock can continue to reward investors in 2021 and beyond. BlackBerry has the tools and the leadership to grow into one of the prominent tech powers on the TSX. Let’s dive in.

BlackBerry has expanded its reach with its Amazon collaboration

BlackBerry’s jump into the big time started in the beginning of December 2020. At the time, it announced its collaboration with Amazon Web Services. The two aim to develop an Intelligent Vehicle Data Platform named BlackBerry IVY. This scalable, cloud-connected software platform will allow automakers to provide a consistent and secure way to read vehicle sensor data. Moreover, automakers will be able to normalize the data, and create actionable insights from that data locally in the vehicle and in the cloud. This collaboration could produce a big leap forward for automotive software.

The push into automotive software was already a great reason to be excited about the former hardware giant. Automated vehicle development will ramp up in the years and decades ahead. BlackBerry has positioned itself to be a leader in this push towards the future.

A Canadian patent power

BlackBerry’s stock has gained huge momentum in recent weeks, as attention has turned to its position as a global patent power. Its settlement with Facebook illustrated how far its reach was in the tech space. We don’t know the settlement, but it is a very positive step forward.

The Waterloo-based company attracted some controversy last week. It was revealed that it had sold 90 patents to the Chinese telecom giant Huawei in late December. This attracted some criticism in a highly charged geopolitical climate. However, BlackBerry boasts a massive trove of patents. The company sold smartphone-linked patents to Huawei, which makes sense as it has transitioned away from this market over the past decade.

Why the sky is the limit for BlackBerry

Shares of BlackBerry have now shot up 111% in 2020 at the time of this writing. Its exposure to some of the most promising tech markets in the world should keep investors betting on it this decade. BlackBerry boasts a footprint in automotive software development, it is a cyber security leader, and one of the few Canadian companies that possesses one of the largest patent troves in the world. Moreover, the stock also offers exposure to artificial intelligence development.

BlackBerry has set itself up for the long term under the leadership of CEO John Chen. The possibilities are endless for this tech stock in the years ahead. Investors should not be shy about stacking its shares for the long term.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Facebook. Tom Gardner owns shares of Facebook. The Motley Fool owns shares of and recommends Amazon and Facebook. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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