BlackBerry (BB)
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BlackBerry (NYSE:BB) was once a titan in the mobile phone industry and, to the surprise of most investors, is still in the game after exiting its smartphone business in 2016. Since then, it’s been looking to carve out a niche in building secure operating systems for cutting-edge tech platforms such as smart cars but hasn’t quite hit the mark. The grim reality is reflected in its financials, with revenues tumbling from $1 billion in fiscal 2020 to a mere $656 million in fiscal 2023.
Nevertheless, its management is upbeat about its prospects, projecting a 13.5% compounded annual growth over the next three years, riding on its IoT and automotive businesses. However, investors have waited for a BlackBerry comeback for over a decade. Given its murky track record, the chances of a successful revival seem slim.
Its stock has been buzzing of late due to its 2019 acquisition of Cylance, a cybersecurity firm that integrates AI in its detection process. The popularity of all-thing AI led to the stock’s rally, but traders must approach this rally cautiously and consider selling.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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