BlackBerry (TSX:BB) Stock: $0 or $100?

The BlackBerry stock soared during the GameStop episode at Wall Street, but the rally did not sustain. Despite several growth catalysts, investors are concerned about how the company will perform in the long term.

While the GameStop craze was reaching a fever pitch, BlackBerry (TSX: BB)(NYSE: BB) was having a rally of its own. On January 28, 2021, the American video retailer’s shares rose 134.8%, while the Canadian tech stock climbed 34.8%. As of this writing, the GameStop mania is over.

On February 18, 2021, GameStop shares are down 88.3%, and BlackBerry plunged 55.9% to $13.88. More than three weeks ago, Reddit investors sent both stocks on a rocket ship ride. The new army of traders focused more on momentum opportunities rather than market valuations. Professional traders stayed on the sidelines and watched GameStop’s breakneck rally.

The U.S. House Committee on Financial Services has started hearings on the retail trading frenzy with GameStop and hedge funds in the hot seat. BlackBerry will also be in focus, along with other companies Robinhood retail investors were pumping up.

Unfair comparison

GameStop and BlackBerry are both transforming themselves, although the future is bleaker for the operator of video game stores. The business is doomed, as game sales are collapsing, despite the new game consoles coming out in the market. More so, the shift to e-commerce and digital downloads is accelerating during the health crisis.

To say that BlackBerry is in the same boat as GameStop is inappropriate, in my view. The erstwhile smartphone king has successfully reinvented itself to become a leading-edge intelligent security software and services provider. Meanwhile, the share price today is 70.5% higher than it was a year ago. It appears the tech stock has a long growth runway ahead.

Visible growth catalysts

Growth investors should include BlackBerry in their watchlists, because it’s far from hype. There are renewed growth potentials, especially the recently released new technology and AI-driven BlackBerry Cyber Suite. John Chen, BlackBerry’s Executive Chairman and also said the company is making significant progress with partnerships.

Management signed a multi-year, exclusive partnership with Amazon Web Services (AWS), where the two companies will co-develop and co-market BlackBerry IVY. The new platform could be the next source of recurring revenue stream. You can bet that a company that powers vehicles will its AI-powered car software will remain strong.

Currently, BlackBerry secures millions of endpoints, including 175 million QNX car software in vehicles on the road today.  Also, expect the autonomous driving sector to grow further in the foreseeable future.

Amid the ongoing pandemic, BlackBerry helps to ensure critical healthcare supplies and essential goods gets to the market. The company knows how vital supply chain efficiency and security are today. One of the growth catalysts is the BlackBerry Radar R2.

Logistics businesses, transportation, and devices worldwide that use BlackBerry’s technology can unlock excess shipping capacity. Transport companies, the lifeblood of economies, will gain better visibility into their entire fleet.

Investors’ apprehension

BlackBerry is sliding since February 1, 2021, and following the end of the GameStop drama. Regarding the recent trading frenzy, the company said it was not aware of any undisclosed corporate developments that prompted the recent increase stock price or trading volume.

According to some analysts, there are apprehensions among investors about how the company will perform in the long run. There’s a ton of potential and several growth catalysts that could send the stock price to $100. However, BlackBerry must show results on the top and bottom lines soon.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and GameStop. 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.

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