BlackBerry might’ve fumbled its lead in the smartphone game, but the Canadian company is setting the stage for a comeback.
Driving the news: BlackBerry’s stock has rallied to its highest level in over a year, jumping 79% since the end of October. The bull run has been driven by renewed interest in the company’s recently streamlined cybersecurity division and vehicle software biz.
- Unlike other brief spikes in BlackBerry’s stock, the recent rally isn’t being driven by a so-called meme stock craze.
Catch-up: Back in December, BlackBerry sold a money-losing division of its cybersecurity business, Cylance, for ~US$160 million, a move that investors applauded despite the ~$1.2 billion loss the company took on the deal. Since the sale, BlackBerry’s stock has climbed over 33%.
- Without Cylance, analysts say the company’s secure communications unit is now far more attractive, especially with governments as marquee customers.
- Meanwhile, BlackBerry’s vehicle software business, QNX — which already has its software in 255 million vehicles — just announced last week that it's partnering with Microsoft to develop new tech.
Why it matters: BlackBerry is still a shell of the tech giant it was when it eclipsed RBC as Canada’s most valuable company, but with profits from both of its core businesses projected to take off in the next two years, things appear to be looking up for the Waterloo firm.—LA