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This hot stock started making a buzz in the second half of 2020 with its breakthrough collaborations. A big player of the 2000s decade, this company fell from its glory after failing to maintain its market share in the dynamic and fast-paced tech industry. But instead of going down, it rejigged its business strategy and transitioned to a new model.
In the last three months, this tech stock has witnessed a remarkable growth of 271.5 per cent. The shares have outperformed the benchmark TSX index and garnered almost 182 per cent returns in the last one month.
Once a mobile phone maker, BlackBerry Limited (TSX:BB) now offers enterprise and cybersecurity solutions to a range of industries. It is also a market leader in Internet of Things (IoT) sphere.
Its latest strategic business partnerships with Baidu, Amazon Inc and Huawei have propelled its growth in triple-digit.
Let us delve this Canadian hot stock’s financials and market fundamentals:
BlackBerry Limited (TSX:BB)
The Ontario-based company aims to secure the threats faced across the enterprise landscape.
Nearly 100 million pieces of malware are released every year and 90 per cent of cyberattacks remain unreported, claims Blackberry. About 97 per cent of cyberattacks are attempted via the endpoint and over 50 per cent of IoT endpoints have been attacked, it adds.
The company has a range of offerings that includes a Unify Endpoint Security and Endpoint Management system, BlackBerry IVY for harnessing data in cars, microkernel operating systems through QNX technology, Zero Trust for security architecture, critical event management platform AtHoc and many more.
Apart from smart cars and smartphone enterprises, Blackberry also offers its cybersecurity products to top government agencies.
Some of its top-tier clients includes Telus, Vodafone, Jaguar, AWS, Microsoft, Google, Verizon and others. All G7 governments, 18 of G20 governments, automakers, global banks and top government agencies such as National Security Agency (NSA), a part of US Department of Defense and Department of Homeland Security.
BlackBerry’s Stock Performance
Canadian software provider’s scrips have zoomed over 181 per cent year-to-date (YTD), led by its patent infringement settlement with Facebook. Consequently, the stock is trading at a nine-year high of C$ 23.78, with a 30-day average volume of 7.35 million. Its 10-day average trading volume has increased to 14.61 million.
The stock plummeted to C$ 3.94 per unit on March 18, 2020. Since then, the shares have been soaring north, skyrocketing by 503.55 per cent. Its current price-to-cashflow ratio has surged to 160.40.
BlackBerry's One Year Stock Performance Chart. (Source: EODHD/Others, Thomson Reuters)
The former smartphone giant made a comeback among the top technology companies listed on the Toronto Stock Exchange (TSX).
The large cap tech company has a current market capitalization of approximately 13.4 billion. The stock is holding a price-to-book ratio of 5.786, and its debt-to-equity ratio stands at 0.33.
The software stock has rallied with 174 per cent gains in the last one-year period. Its stock traded volume zoomed to almost 22 million on Tuesday, January 26, propelled by the Reddit traders’ frenzy.
BlackBerry's Stock Performance (Source: EODHD/Others, Thomson Reuters)
Blackberry Financial Performance
In its third quarter, which ended on November 30, 2020, the company reported cash from operating services of US$ 29 million. It posted revenue of US$ 218 million for Q3 FY21, compared to US$ 683 in the same period of FY20. The company generated software revenue of US$ 162 million for the third quarter.
The company is likely to report its fourth quarter of FY 21 results on 31 March 2021.
BlackBerry’s Breakthrough Partnerships
Its QNX-based software has been picking up on the back of cloud computing demand. The company has geared up its business with some partnerships.
It is set to collaborate with Chinese smart map app Baidu to develop automotive tools. These tools will target the next generation and autonomous vehicles market in China.
Under this contract, Blackberry’s QNX Neutrino real-time operating system will be incorporated with Baidu’s high-definition maps. As a new entrant in the biggest smart vehicle market, this partnership will boost Blackberry’s global business prospect.
The company also entered a partnership with Amazon Web Services (AWS) in late 2020. Blackberry expects to augment its cloud-based products from this deal that would aid its smart cars data division, BlackBerry IVY.
The company also reportedly sold nearly 90 patents to Chinese telecom giant Huawei.
Favorite Among Reddit Traders
The stock has been going viral among social media platforms like Reddit and Twitter, which is boosting its gaining spree further. However, BlackBerry stated on January 25 that it does not know the exact reason for the ongoing bullish run of its stock. The stock remains on the retail traders’ radar which is fueling its rally.
Outlook
BlackBerry’s future performance will depend on its innovative SaaS-based services and the duration of its existing collaborations with global tech companies. Its cybersecurity segment may see a rise amid the ongoing all-digital services demand.
