Why Is BlackBerry Stock So Cheap?

BlackBerry’s car business growth is overtaking cybersecurity. 

Andrew Willis 3 February, 2023 | 4:28AM
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Andrew Willis: What started as an iconic Canadian smartphone company and became a meme stock is once again transforming. This time, you’ll find BlackBerry (BB) under the hood, where it leads the market in automotive infotainment systems.

In addition to electronic control units and driver assistance programs, BlackBerry’s QNX system puts the company in pole position to capture growth in the software space for cars. Stock analyst William Kerwin says the company’s core cybersecurity business, however, is in a highly fragmented and competitive market now.

What once helped inspire a meme stock in the cybersecurity space may be taking a back seat to growth in Internet of Things applications at Blackberry – namely automobile software ecosystems. It’s still a speculative bet and there’s likely a long road ahead before it pays off – but without the meme stock premium.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BlackBerry Ltd3.95 CAD-6.18Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar Canada. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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