BlackBerry: A Re-Branded Company Without A Re-Valued Price
Intel’s recent acquisitions show willingness to pay a large premium to get into the autonomous car market.
BlackBerry’s stock is being valued for all the wrong reasons.
Innovation and drive of the QNX branch of BlackBerry will help grow the company.
The current stock price of BlackBerry (NASDAQ:BBRY) represents that of a dying mobile communications hardware company rather than one of an innovative and forward-thinking software security company. The BlackBerry name has been tarnished by its massive fallout of the mobile phone marketplace, and investors underestimate the upside that the company has within its subsidiaries. I will explain why investors need to begin to look at this stock for its future prospects rather than for its past failures.
Firstly, a quick look at the current situation of the stock. From the chart below, you can see that the stock has been declining for years and now trades at a small percentage of its peak price. It has had a lot of short interest in recent years but that has eased up of late. Around the time of its peak, BBRY was a high-flying mobile phone selling company with a large market share, but the subsequent fallout was due to an inability to adapt to the emerging smartphone takeover and the loss of its business mobile niche. Now, BlackBerry has a reported operating systems market share of 0.0%, a figure that gives an understandable reason for such a low stock price. I believe this completely disregards the company’s jump into the far more fast-growing and innovative sector of autonomous driving and connected car technology.
(Source: Seeking Alpha)
The negative stigma surrounding BlackBerry’s phone sales has affected the share price but perhaps a lack of awareness of its endeavors and successes in the automated car market leaves the share undervalued for the company’s true operations.