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.