1 Red-Hot Reddit Stock to Buy Today and Hold Forever

BlackBerry (TSX:BB)(NYSE:BB) stock could still be one of the best Reddit stocks to buy today for the long term. Here’s why.

| More on:
Target. Stand out from the crowd

Image source: Getty Images

The shares of BlackBerry (TSX:BB)(NYSE:BB) have seen a big roller-coaster ride in 2021. The stock started the year on an outstanding note, as it posted nearly 113% gains in January. Reddit traders took BB stock too high, too fast; it lost some of these gains in the following couple of months. Nonetheless, the Redditors seemingly became active again in the second quarter. They partly helped the stock post solid 44% gains for the quarter. With this, it’s currently trading with 66.2% gains for the year. These gains were much higher compared to a 16.1% year-to-date rise in the TSX Composite Index.

Before discussing whether BlackBerry stock is still a good buy, let’s take a look at some latest developments.

BlackBerry: Latest news

BlackBerry’s QNX operating system has become one of the most popular software among global automakers in the last few years. The company currently has large auto companies like Aptiv, BMW, Bosch, Ford, GM, Honda, Mercedes-Benz, Toyota, and Volkswagen in its long client list.

Last month, BlackBerry announced that its QNX software is now being used in more than 195 million vehicles across the globe. This data reflected an increase of about 11% in the number of QNX-embedded vehicles. The QNX software platform helps automakers secure data gateways and provide advanced features like digital cockpits and advanced driver-assistance system in their vehicles.

Continued innovation and efforts

BlackBerry’s expertise in security software, artificial intelligence, and machine learning gives it an edge over the competition. The company is now focusing on expanding its offerings for the automotive industry by developing more advanced technologies for tomorrow’s vehicles. For example, BB started developing an integrated vehicle data platform called IVY in December last year. For this, it partnered with Amazon Web Services, which would ensure the scalability of the platform.

Interestingly, the company recently formed the BlackBerry IVY Advisory Council with some transportation and mobility companies as its members. The council body is likely to help BlackBerry develop its IVY platform, according to the needs of the member companies from the transportation and mobility industries.

IVY platform would allow car companies to access vehicle sensor data in real time. Carmakers can utilize the data in real time to provide better and more advanced features to the consumers. That’s why I expect the IVY platform could help BlackBerry become one of the major players in the ongoing autonomous and electric vehicle race.

Is this Reddit stock worth buying today?

Lower automobile demand badly hurt BlackBerry’s QNX segment sales last year — taking its total revenue down. While its QNX segment sales are likely to significantly improve this year, its total revenue could still decline due to the company’s ongoing negotiation with a North American party to sell the portion of its patent portfolio. That’s why I wouldn’t expect its earnings to showcase extraordinary growth in the short term.

Nonetheless, BB’s rising expertise in the cybersecurity domain and its increasing focus on electric and autonomous vehicle-related technologies could help its financials grow exponentially in the coming years. That’s why I find its stock really attractive for long-term investors, even without Reddit traders’ support.

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. The Motley Fool owns shares of and recommends Amazon and Volkswagen AG. The Motley Fool recommends BMW and BlackBerry and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

work from home
Tech Stocks

Could Lightspeed Stock Be a Big Winner in 2023?

Investors can capitalize on Lightspeed’s low valuation and benefit from the recovery in its price.

Read more »

Tech Stocks

TFSA Passive Income: How I’m Investing to Make $2,000/Year From Dividends

I am increasing my dividend income by investing in dividend stocks like the Toronto-Dominion Bank.

Read more »

Electric car being charged
Tech Stocks

Is Now The Time to Buy EV Stocks?

EV stocks may be down now, but don't count them out. They'll soon be back up again, so now may…

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

Better Buy: Amazon vs. Apple Stock

While both Amazon and Apple have bright long-term prospects, Apple stock looks like the best tech company to invest in…

Read more »

A stock price graph showing declines
Tech Stocks

Has Blackberry Stock Finally Stopped the Slide?

Blackberry has not yet delivered the kind of financial results that we know it can, but this is about to…

Read more »

Car, EV, electric vehicle
Tech Stocks

Chinese Stocks are Soaring: This TSX Stock Could Gain

Magna International stock could benefit from China's economic re-opening.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

1 Oversold Growth Stock to Buy for Major Returns in 2023

This growth stock could be the best Canadian stock to buy now for 2023, with shares possibly doubling back to…

Read more »

Hands holding trophy cup on sky background
Tech Stocks

Could BlackBerry Stock Be a Big Winner in 2023?

BlackBerry (TSX:BB) stock more than halved last year amid the tech stock selloff. Could 2023 be a winning year for…

Read more »