This year could be the year for BlackBerry (TSX:BB)(NYSE:BB) investors. The company has been on the verge of a breakthrough for years now. But in 2021, it looks like the stars might align to create a huge opportunity for today’s investors — even after a recent bull run for the stock.
The recent run comes from the company’s deal that, frankly, should have made shares continue trading higher and higher. BlackBerry stock shot up, as the company made a partnership with Amazon Web Services. The partnership will be life-changing for the company, as the pair work together on BlackBerry’s Intelligent Vehicle Data Platform (IVY). This trend of improving cloud-based data in cars will be a necessity in the next few years to keep car companies at the cutting edge. And BlackBerry has that edge.
Basically, if you’re betting on BlackBerry stock today, you’re betting on this partnership. You’re believing that two major companies will come together to create an innovative automobile software system. This has been the goal for the company for years, as it focuses more and more on software. It could finally lead to the growth in revenue that so many shareholders have been waiting for.
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This partnership combined with the price point put this stock in clear value territory. The company is a steal with a price-to-book (P/B) ratio at 3.4 as of writing. The latest news may have passed, but as more and more news comes from this company, you can almost guarantee there will be further price jumps.
And let’s not forget, the company has partnered with many automotive companies over the year — some of which have even announced it will have a shift over to a full fleet of electric vehicles (EVs) by 2030. This market alone is going to be worth about $1 trillion by 2030, so no wonder companies are looking to get in on the action. And right there will be BlackBerry’s QNX software being placed into every one of these EVs.
Shares in the stock are up 81% in the last year alone after coming down from the news. But a patient investor knows that this company’s growth potential will be huge. The company is most assuredly undervalued given the amount of growth potential it has. This software continues to be cutting edge, which is why Amazon has partnered with the company. This alone should tell investors that major revenue shifts are not far behind.
I get it, you’ve been patient with BlackBerry stock for a long time. After a bull run has left the stock at highs that aren’t all that exciting, you might want to wait. But with more investment going into EVs this year and beyond, now is the time to buy up BlackBerry. Even if returns are slow to start, you can bet shares will soar in the next decade. Let patience be your virtue. Buy it today and hold onto it forever to see returns potentially like nothing else in your portfolio.
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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. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. 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.