I really hope this doesn’t upset the crowd at Reddit’s WallStreetBets forum, but I think BlackBerry (TSX:BB)(NYSE:BB) looks like the better high-upside bet than GameStop (NYSE:GME) at this juncture. If you’re a trader who’s looking to make a quick buck, then, sure, GameStop stock may be the way to go.
That said, I fear that many momentum-chasing beginner investors are at risk of being left holding the bag again. Although GameStop stock’s latest rally looks more tame than the last one, I would only look to get in here if you see yourself buying the stock if it were to pullback by another +80% from peak to trough. It’s the diamond-handed, strong-stomached investors who will stand to make money from the name after its latest 550% pop.
BlackBerry stock: There’s real value to be had here, folks!
There’s really no telling which stock the WallStreetBets crowd will target next or if GameStop stock will be the last of the historic short-squeezes (I don’t think we’ll see short interest exceeding 100% of the public float anymore). In any case, I wouldn’t discount the firepower of the retail army at WallStreetBets, as they look to make hedge funds feel the pain.
While there’s no telling if the BlackBerry trade will heat up again, I think the stock reeks of deep value, with shares now off nearly 60% from their January 2021 highs. Despite the 166% run-up over the last year, I still think there’s ample value to be had. And in numerous prior pieces, I’ve praised BB stock as one of the most investable stocks on WallStreeBets’s hit list.
Now that the speculative crowd has sold out, moving on to sexier opportunities, I think now is as good a time as any to initiate a starter position in BlackBerry stock. I have no idea if the stock will spike up in an insane WallStreetBets coordinated pop.
Regardless, I think exciting developments over the past several months are worth betting on. Most notably, BlackBerry’s project IVY is expected to be a major needle-mover over the long run. BlackBerry’s collaboration with Amazon.com Web Services (AWS) on IVY should not be discounted. Although it’s still far too early in the game to tell how big of an impact the vehicle data project will have, I think the project could fuel meaningful recurring revenues for years to come.
Take it from a Fool: BB stock is a better auto play than Tesla
Fellow Fool contributor Adam Othman thinks that BlackBerry stock is a better driverless auto play than Tesla now that its QNX business is looking up while project IVY goes on in the background. Given I think Tesla is a massive bubble that could burst at any time, I’d have to agree with Othman.
Othman also touts BlackBerry stock could be in for some serious upside re-valuation, as the firm looks to prove to skeptical analysts that it can, in fact, get back on the growth track.
“Waiting for the stock to be undervalued over time might not be prudent, but it might also not be the time to invest heavily in BlackBerry. But the company should be on your radar. Any major contract or positive news in the autonomous vehicle industry might boost BlackBerry’s valuation.” said Othman.
I think Othman is right on the money. There’s real opportunity to be had in BlackBerry under its CEO John Chen. WallStreetBets crowd or not, BB stock is a buy.
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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 Joey Frenette owns shares of Amazon. David Gardner owns shares of Amazon, GameStop, and Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Amazon and Tesla. 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.