As one of Canada’s hottest and most exciting tech stocks, BlackBerry (TSX: BB)(NYSE: BB) certainly deserves to be on your radar screen. Today, BlackBerry has seen its stock price head into dirt-cheap territory. It’s definitely been a volatile ride, so I can understand why many investors might be wary.
In this article, I would like to talk about the value in BlackBerry. I believe that this company’s sordid and complicated history has gotten in the way of investors truly understanding and appreciating it. There’s a vast opportunity that lies ahead.
BlackBerry stock dips below $10, as analysts raise doubts
BlackBerry’s stock price graph does not look good. In fact, it looks quite terrible. Analyst rumblings are saying that the company might miss its fourth-quarter earnings estimate, and this is driving the fall. Also, the macro environment is certainly also driving this. I mean, investors are nervous. Events such as rising inflation and the Ukraine invasion are scary. I think risk tolerance levels are lower for a company like BlackBerry, which has no earnings.
But while some might see gloom and doom, I see optimism. In fact, I see a great opportunity. Let me explain. BlackBerry has seen its stock price fall 20% in 2022. It’s trading in its lowest range since the end of 2020. If you’d bought the stock in 2021, you’re not happy. Regardless, BlackBerry stock might not be trading this low for long. Therefore, it’s a really great opportunity to consider building a position.
A quality company with an outstanding reputation
The simple fact is that BlackBerry has a lot going for it. Despite the fact that we cannot see this in the financial results yet, it’s building and brewing. For example, BlackBerry is driving and innovating two of the most promising trends in technology. The cybersecurity business is worth an estimated +$150 billion. It’s an increasingly relevant and high-growth business. Also, BlackBerry is a leader in embedded systems. BlackBerry’s software enables machine-to-machine connectivity, and it’s transforming many industries. The company is best known in this area for its software technology in connected cars. But this technology is also in medical devices and robotics.
Let’s take this a step further. Beyond this top-level snapshot, BlackBerry has won countless awards for its different products and designs. This has created and supported the company’s top-notch reputation and respect. This translates into strong partnerships, business relations, and, ultimately, contracts and revenue.
BlackBerry’s IVY is gaining momentum
In late 2020, Amazon Web Services and BlackBerry announced that they will be working together. This partnership will develop and market BlackBerry’s Intelligent Vehicle Data Platform, IVY. Essentially, IVY is the data engine that powers any data-driven application that developers build for a car. It takes raw data, processes it, and develops insight.
BlackBerry released its first version of IVY last fall. According to management, it’s been very successful. In fact, the company is being inundated with requests by original car manufacturers (OEM) to run pilots in their vehicles. By the end of the year, BlackBerry hopes to have a version that could go into production.
The competitive advantages of IVY are threefold. Firstly, IVY meets all safety standards and automotive requirements. BlackBerry has been working with automotive tech for years and its products reflect that. Also, IVY processes data in the vehicle. This improves service, is more secure, and lowers costs. Lastly, IVY is designed to meet the needs of the OEMs. This means that the OEMs maintain control of the data. Therefore, BlackBerry will be a true partner and not a threat.
Motley Fool: The bottom line
BlackBerry stock is, in my view, a great buying opportunity now. The future is promising. Also, its markets are massive and high growth. BlackBerry is a company that investors can feel comfortable with for many reasons. For example, it has a great industry reputation for quality products and solutions. I think that BlackBerry stock won’t be under $10 for much longer.
