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We came across a bullish thesis on BlackBerry Limited (BB) on wallstreetbets Subreddit Page by NYCandrun. In this article, we will summarize the bulls’ thesis on BB. BlackBerry Limited (BB)'s share was trading at $5.58 as of Feb 20th. BB’s forward P/E was 52.91 according to Yahoo Finance.
A driverless vehicle navigating city traffic, equipped with ADAS and safety features.
BlackBerry is far from a dead brand or a failed smartphone company—it is an entrenched, high-margin infrastructure software business that has remained under the radar amid the AI-driven stock rally. While software companies even loosely tied to AI, IoT, or automation trade at premium valuations, BlackBerry, which powers over 255 million vehicles and counting, continues to be valued as if it has no future. The reality is quite different. BlackBerry dominates real-time, safety-critical automotive systems with its QNX operating system and is now expanding its footprint with IVY, a cloud-based vehicle data platform co-developed with AWS. IVY allows automakers to process, analyze, and monetize vehicle sensor data in real time, making it exactly the kind of AI-adjacent, SaaS-like business that should trade at significantly higher multiples. Yet, the market currently assigns it zero value.
BlackBerry's QNX software is embedded in 255 million vehicles and continues to grow at a rate of over 20 million new installations per year. The company’s backlog has increased 27% year-over-year to $815 million, providing forward revenue visibility. IVY has already secured early adopters like Foxconn’s MIH EV platform, Dongfeng, and Mitsubishi Electric, showing real industry traction. Meanwhile, BlackBerry’s cybersecurity division, which generates $350 million to $365 million annually, has stabilized after years of underperformance. This business, now focused on high-trust government and enterprise contracts, is profitable with a $280 million ARR and improved margins of 65%. Despite these strong fundamentals, BlackBerry remains dramatically mispriced, offering an attractive entry point before the market catches up.
The re-rating process could begin as soon as BlackBerry's upcoming earnings report on April 2nd. If the company provides strong IVY guidance, it could immediately spark investor interest and drive a valuation reset. Even without IVY, QNX alone justifies a higher multiple. Given that every other infrastructure software business with comparable positioning has already seen its valuation rise, BlackBerry is likely to follow. The current setup offers a significant margin of safety, with substantial upside potential. If the market starts valuing BlackBerry correctly, the stock could trade between $12 and $18 within the next two to three quarters. If IVY scales faster than expected, the upside could be even greater.