BlackBerry (NYSE: BB)
stock is adding to its gains after gapping up following a positive earnings report. The company beat expectations on both the top and bottom lines. Over the next couple of weeks, investors will get a chance to see if the report is enough to move the needle with analysts.
However, the story of BlackBerry in 2021 has been about the retail investor. On two separate occasions, retail investors have sent BB stock to levels it hadn’t seen in five years. Both times, the stock has failed to hold those gains. Is this the beginning of a third attempt? And if so, will that attempt successfully push the stock higher?
In my opinion, the answer to the first question is it’s too early to tell. And to the second question, I would say that if it does, I’m not sure it would be long-lasting. However, that doesn’t mean that Blackberry isn’t worth a closer look for risk-tolerant, patient investors.
A Software Company at Heart
To individuals of my generation, the first thing that comes to mind when we hear BlackBerry is the company’s mobile phone that took the world by storm in the early 2000s. However, even then, the products were known for their safety and security. That was a reflection of the company’s roots as a software company.
That’s why it’s not a reach for the Canadian company to be emphasizing cybersecurity. It’s a natural extension of where it was. And currently, cybersecurity sales account for approximately two-thirds of the company’s revenue.
Strategic Partnerships Will Keep BlackBerry Competitive
When cybersecurity companies are advertising on national television, you know that this is becoming a crowded trade. There are loads of competitors that may put a ceiling on BlackBerry’s growth. However, investors can take note of the company’s partnership with Microsoft (NASDAQ: MSFT).
Initially this partnership was about integrating BlackBerry’s “AtHoc” program into Microsoft Teams. But with Microsoft making investments into cybersecurity, it’s not hard to believe that there will be more business coming BlackBerry’s way.
The Real Growth May be Years Away
Earlier this year, I'll admit to being excited about BlackBerry’s partnership with Amazon (AMZN). This has to do with the company’s Intelligent Vehicle Data Platform (IVY). According to BlackBerry, IVY “will allow automakers to provide a consistent and secure way to read vehicle sensor data, normalize it, and create actionable insights from that data both locally in the vehicle and in the cloud.”