BlackBerry Ltd (NASDAQ: BBRY)
BlackBerry has had a rough time in the market over the past couple of years, there’s no denying that. However, throughout the past year, the company has made some changes that are starting to make their stock appealing again. Today, we’ll talk about three reasons that, in my opinion, BBRY has turned into a buy. So, let’s get right to it…
Reason #1: The BlackBerry Priv
The Priv is the first reason, in my opinion, that BBRY has become a buy. The Priv is a new model smarthpone that BBRY launched last year. However, they had to swallow a bitter pill to do so. You see, for some time, the company couldn’t seem to get smartphone sales to rise. The reason was simple. As the smartphone industry evolved, consumers started to pick the iOS and Android operating systems as their favorites. Unfortunately, BlackBerry’s QNX operating system simply didn’t make the grade. However, the company realized that it was the operating system that was causing sales to dwindle. As a result, the Priv was launched. The new smartphone takes advantage of the incredible hardware and security that BBRY is know for, while offering the overwhelmingly popular Android operating system. As a result, the new phones flew off the shelves. In fact, the company received so many orders for the Priv that shipments to some customers were delayed due to lack of availability. Now, BBRY has announced that it will be creating more smartphones along these lines and, in my opinion, this will be the move that pushes the company’s smartphones back into profitability.
Reason #2: QNX Is Not Dead
As you likely know, QNX is the name of the operating system that BlackBerry previously used to power its smartphones. Unfortunately, however, the operating system just wasn’t one that consumers enjoyed, so it looks like BBRY will stop using it in phones. However, QNX is not dead quite yet. Did you know that the QNX operating system is now being used to power traffic signals? What if I told you that it was being used in the medical equipment your doctors use, or the manufacturing equipment that several manufacturers are using these days? Well, that’s the truth. While the QNX operating system didn’t bode well in smartphones, it is being used to connect several different pieces of equipment to the Internet of Things, which will likely turn a profit from this department in the long run.
Reason #3: Software Segment
Finally, when smartphones simply weren’t selling for BBRY, the company had to figure out something to take up the slack. As a result, the launched the software and security segment of their company. While it has taken a bit of time to get to this point, this segment is becoming incredibly appealing as it is generating a decent portion of the company’s earnings.
While many investors look at BBRY in a negative light, I don’t think the company deserves this view anymore. The reality is that BlackBerry has struggled in the past, and for good reason. However, watching what the company has done over the past year to turn things around has been incredible. All in all, things are looking great for BBRY in the future.
What Do You Think?
Where do you think BBRY is headed and why? Let us know your opinion in the comments below!
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