3 Reasons to Never Sell BlackBerry (TSX:BB)

BlackBerry stock might seem down and out for many long-time investors, but the stock could be worth making a part of your investment portfolio for a few very good reasons.

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Tech stocks like BlackBerry (TSX:BB)(NYSE:BB) are often considered to be valuable part of investor portfolios, possessing the potential to deliver stellar shareholder returns. Investing in technology has become increasingly popular, especially during the pandemic due to the favourable conditions for the industry created by the global health crisis.

However, shares of the Canadian tech company have taken its investors on a roller-coaster ride of emotions over the last decade. The stock fell from a record high of $247 in 2007 to a mere $6.12 per share in September 2012. What was once a leading mobile phone manufacturer was left miles behind by the now well-known tech giants Apple and Samsung, among many others still emerging in Asian markets.

Now, the company is out of the smartphone market, but the tech company is not down and out. It shifted its focus to the less exciting but very important enterprise-based software and security solutions market. Investors have been waiting for the company to provide them with the much-anticipated turnaround that seemingly never comes.

Today, I will discuss why you should buy BlackBerry stock and never sell its shares to help you make a well-informed decision regarding the former mobile phone manufacturing giant.

A strong future in cybersecurity

In an increasingly digitized world, the need for enterprise-level cybersecurity solutions will only increase. The pandemic has shown that it is possible for businesses at every level to operate with a remote work structure. It is likely that many companies may choose to stick to such an operating environment long after the pandemic ends.

The company’s cybersecurity segment could drive the company’s growth, as the demand for its endpoint security systems and management systems continue to rise.

IoT and QNX

While its cybersecurity sales have not been as strong as expected of late, BlackBerry has benefitted from its presence in two more invaluable spaces: the Internet of Things (IoT) and an embedded operating system for the automotive industry called QNX. Its growing deployment of QNX in vehicles has significantly offset its weaker cybersecurity sales, and its revolutionary OS has already been embedded in over 195 million vehicles.

The company’s recent partnership with Amazon Web Services to develop and launch another software platform that will exchange and manage vehicle data in a secure environment called IVY by 2022 will provide it with a further boost. While the company continues to post operating losses, it has significantly reduced the figure from US$183 million in fiscal 2020 to just $98 million in fiscal 2021.

Foolish takeaway

The $7.28 billion market capitalization stock is trading for $12.85 per share at writing. BlackBerry stock right now is a far cry from what it used to be when it was a dominating presence in the cell phone industry in the early 2000s.

The company has respectfully bowed out from the smartphone space, barring a few unsuccessful stints here and there. However, its focus elsewhere on cybersecurity solutions, IoT, and innovating the future of the automotive industry could very well provide it with the necessary means to become an invaluable asset that can provide you with stellar shareholder returns.

It could be worth investing in BlackBerry stock at its current share price.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Apple. The Motley Fool recommends BlackBerry and recommends the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple.

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