You know how there’s always that growth stock — the one people wish they’d spotted years ago? The one that quietly made its early believers rich while most folks were still laughing it off?
Well, there’s a company on the TSX today that might just fit that bill. You probably think you know it. But chances are, you don’t know what it’s become. While everyone else was focused on flashier tech names, this firm was busy rebuilding, rebranding, and re-emerging in two of the most important industries of the decade: secure enterprise software and IoT (Internet of Things) solutions.
In this article, let’s dive into why BlackBerry (TSX: BB) might be one of the most overlooked yet high-potential stocks for the next decade and why I already own a stake in it.
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BlackBerry stock
In just the past six months, BlackBerry stock has nearly doubled. Zoom out to nine months, and it’s up almost 100%. With this, it currently trades at $6.23 per share with a market cap of $3.7 billion. And no, this isn’t just a random rally. It’s being fueled by a clear shift in momentum.
In its most recent reported quarter ended November 2024, BlackBerry beat revenue expectations in both its secure communications and IoT segments, delivering US$162 million in total revenue. Even more importantly, it turned in positive adjusted earnings and EBITDA (earnings before interest, taxes, depreciation, and amortization).
BlackBerry’s IoT business unit, which included its QNX software, reported a 13% sequential increase in revenue to US$62 million, with a solid 85% gross margin. Similarly, the Waterloo-based tech firm’s secure communications segment’s sales came in at US$93 million, with a margin improvement of 67%. And for the first time in a long time, BlackBerry also returned to positive free cash flow. Such milestones tend to catch investors’ attention quickly, which explains why its stock has rallied sharply in recent months.
BlackBerry’s comeback blueprint
One of BlackBerry’s major moves last quarter was selling its Cylance cybersecurity unit to Arctic Wolf. But it wasn’t a farewell; it was a strategic shift as the company will still resell Cylance’s artificial intelligence (AI)-driven security solutions, keeping access to the technology while shifting focus to areas where it can scale more efficiently.
And that’s where QNX comes in. Interestingly, this software is already used in more than 255 million vehicles globally. It’s the unseen tech behind digital cockpits, safety systems, and the growing world of software-defined vehicles.
Its recent partnerships, including one with Hyundai Mobis and another with Intel to roll out a new safety platform, BlackBerry remains right at the heart of the automotive and industrial IoT revolution. As the demand for such advanced technological solutions soars in the next decade, BlackBerry’s financial growth trends could significantly improve.
Despite all this progress, BB stock still looks undervalued based on its long-term growth outlook. So, while the market chases the next big AI story, BlackBerry is quietly building real solutions for real industries and doing it profitably. If that’s not a stock to watch for the next decade, I don’t know what is.
