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Stocks BlackBerry Limited (TSX: BB) ended its losing streak yesterday with a 3.31 per cent surge and one-day volume of 4.54 million shares. The stock started rebounding as the company unveiled its BlackBerry IVY Innovation Fund on Thursday, March 25, to support the data-driven vehicle ecosystem and develop new applications and products using its advanced automotive data platform, BlackBerry IVY™.
On the New York Stock Exchange (NYSE), shares of BlackBerry (NYSE: BB) were up as much as 2.53 per cent during pre-market trading on Friday, March 26, as the company announced that Scania AB, Swedish transport solutions provider, has selected BlackBerry QNX to offer the safety-certified operating system.
The IVY Innovation Fund's motive is to speed up the expansion of advanced transportation solutions. Initially, the fund will offer approximately US$ 50 million to invest in ventures focused on building data-driven products that can benefit from BlackBerry’s Artificial Intelligence insights and derive value from the partnership of BlackBerry and Amazon Web Services, Inc. (AWS).
Let us delve into the transforming software stock’s price-performance:
Blackberry Limited (TSX: BB)
The Software-as-a-Service (SaaS) stock is still trading at C$ 12.49 that is almost three times lower than its record high of C$ 36 for the current calendar year. Its current market capitalization is C$ 7.063 billion.
In late 2020, Blackberry accelerated its transformation from hardware to software operations, and this devolvement caught the eyes of retail investors that helped its stock growing multiple folds.
This surge was further propelled by a few catalysts, such as a breakthrough tie-up with AWS, a lawsuit arbitration with Facebook, and Reddit investors’ forum-led buying frenzy.
The stock has garnered more than 132 per cent growth in the past one year, surpassing the S&P TSX software (Industry) index that has increased by 53.19 per cent relatively. It is up 177.56 per cent from its 52-week low of C$ 4.50 (Recorded on April 3, 2020).
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In 2021, its fast-growing software businesses, such as SaaS products, automotive solutions, and cybersecurity, could guide the stock to retrieve its 52-week high.
Bay Street analysts will closely monitor when the company will release its full fiscal year 2021 and fourth quarter results on Tuesday, March 30.