BlackBerry Completes Turnaround, Growth Potential Emerges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 54 minutes ago
0mins
Source: Yahoo Finance
- Turnaround Complete: BlackBerry has declared its turnaround complete, focusing on new deals and certifications in QNX and secure communications, marking a significant strategic shift that is expected to drive future revenue growth.
- Stock Price Volatility: Despite a recent 9.17% drop to CA$13.08, the stock has seen a remarkable 180.09% return over the past 90 days, indicating strong market momentum and investor confidence in its growth potential.
- Market Valuation: With a fair value of CA$16.22, which is 19.4% above the current price of CA$13.08, the market may be undervaluing BlackBerry's long-term potential in automotive software and physical AI, particularly its advantages in safety infrastructure.
- Valuation Risks: BlackBerry's current P/E ratio stands at 103.3x, significantly higher than the fair ratio of 29.4x, suggesting that the market is paying a premium for its growth narrative, which introduces clear valuation risks if future growth does not meet expectations.
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Analyst Views on BB
Wall Street analysts forecast BB stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 10.340
Low
4.50
Averages
5.03
High
6.00
Current: 10.340
Low
4.50
Averages
5.03
High
6.00
About BB
BlackBerry Limited is a Canada-based company, which provides enterprises and governments the intelligent software and services. The Company delivers operational resiliency with the certified product portfolio for mobile fortification, mission-critical communications, and critical events management. It operates in three segments: QNX, Secure Communications, and Licensing. The QNX segment consists of the QNX business, BlackBerry Certicom, and BlackBerry Radar. The Secure Communications segment consists of BlackBerry UEM solutions, BlackBerry AtHoc, and BlackBerry SecuSUITE. Its endpoint management platform includes BlackBerry UEM, BlackBerry Dynamics, BlackBerry Workspaces solutions, and BlackBerry Messenger (BBM) Enterprise. The Licensing segment consists of the Company’s intellectual property arrangements and settlement awards. Its BlackBerry Radar is a family of asset monitoring and telematics solutions for the transportation and logistics industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BlackBerry Completes Turnaround, Growth Potential Emerges
- Turnaround Complete: BlackBerry has declared its turnaround complete, focusing on new deals and certifications in QNX and secure communications, marking a significant strategic shift that is expected to drive future revenue growth.
- Stock Price Volatility: Despite a recent 9.17% drop to CA$13.08, the stock has seen a remarkable 180.09% return over the past 90 days, indicating strong market momentum and investor confidence in its growth potential.
- Market Valuation: With a fair value of CA$16.22, which is 19.4% above the current price of CA$13.08, the market may be undervaluing BlackBerry's long-term potential in automotive software and physical AI, particularly its advantages in safety infrastructure.
- Valuation Risks: BlackBerry's current P/E ratio stands at 103.3x, significantly higher than the fair ratio of 29.4x, suggesting that the market is paying a premium for its growth narrative, which introduces clear valuation risks if future growth does not meet expectations.
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- Profitability Concerns in AI: While users of AI products may see substantial margin improvements, Melker expresses doubts about the long-term profitability of these AI companies, suggesting they may struggle to achieve sustainable earnings.
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- BlackBerry's QNX System Advantage: BlackBerry's QNX real-time operating system powers critical systems in 275 million vehicles globally, and despite competition, the company believes its uniqueness in safety-critical applications is hard to replicate, with a $950 million royalty backlog indicating future growth potential.
- Market Sentiment and Stock Performance: Despite Nokia and BlackBerry's stock prices rising 219% and 156% respectively, significantly outperforming the S&P 500's 27% increase, market sentiment remains cautious, particularly for BlackBerry, which has an average price target of $4.18, implying a 59% downside risk.
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- Price Drop Analysis: BlackBerry shares fell over 5% to around $9.75 on Wednesday after gaining nearly 10% the previous week, indicating profit-taking by investors following a one-year high, although the overall trend remains positive.
- Growth Phase Confirmation: CFO Tim Foote stated at the 2026 Baird Global Consumer, Technology & Services Conference that the company has completed its turnaround and entered a growth phase, with long-term trends in its QNX and Secure Communications businesses supporting future growth.
- QNX Business Outlook: QNX revenue is expected to grow up to 15% in FY27, with a $950 million backlog and FY26 sales rising 14% alongside a 20% increase in Q4 sales, highlighting strong momentum, particularly in robotics and industrial automation expansion.
- Buyback Plan and Market Signals: BlackBerry has renewed its buyback program, authorizing repurchases of up to 26.79 million shares through May 2027; despite the RSI nearing 87 indicating overbought conditions, technical indicators support a price floor around $8.50, suggesting the recent decline is a healthy correction rather than a bearish reversal.
See More
BlackBerry Completes Turnaround, Growth Potential Emerges
- Turnaround Complete: BlackBerry has declared its turnaround complete, focusing on new deals and certifications in QNX and secure communications, marking a significant strategic shift that is expected to drive future revenue growth.
- Stock Price Volatility: Despite a recent 9.17% drop to CA$13.08, the stock has seen a remarkable 180.09% return over the past 90 days, indicating strong market momentum and investor confidence in its growth potential.
- Market Valuation: With a fair value of CA$16.22, which is 19.4% above the current price of CA$13.08, the market may be undervaluing BlackBerry's long-term potential in automotive software and physical AI, particularly its advantages in safety infrastructure.
- Valuation Risks: BlackBerry's current P/E ratio stands at 103.3x, significantly higher than the fair ratio of 29.4x, suggesting that the market is paying a premium for its growth narrative, which introduces clear valuation risks if future growth does not meet expectations.
See More
Solidion Launches Extreme Climate Battery Platform for Space Applications
- Solidion's Technological Breakthrough: Solidion's stock surged 356% to a 52-week high of $38.15 following the launch of its extreme climate graphene battery platform, indicating strong market interest in its applications for space, particularly for satellites and future lunar missions.
- BlackBerry's Turnaround Confidence: BlackBerry's stock extended its rally for a third consecutive week, with CFO Tim Foote revealing at a conference that QNX revenue is expected to grow by 15%, suggesting successful restructuring efforts and boosting investor confidence in its applications in safety-critical systems and AI technology.
- Cisco's Innovation Leadership: Cisco's stock reached a record high of $130.37, driven by significant investments from enterprises and cloud providers in networking upgrades, while the company raised its AI order target from $5 billion to $9 billion, reflecting robust market demand.
- Market Sentiment Shifts: Retail sentiment for Solidion rose from 'bullish' to 'extremely bullish', while BlackBerry remained in the 'extremely bullish' zone, and Cisco maintained a 'neutral' sentiment, reflecting varying investor perspectives on the growth potential of these companies.
See More
Discussion on IPOs of SpaceX and Others
- IPO Outlook: Scott Melker and Gary Cardone discuss the upcoming IPOs of SpaceX, Anthropic, and OpenAI, highlighting skepticism about their profitability despite significant market interest.
- Market Dynamics: In the past two weeks, traditional companies like IBM, BlackBerry, and Hewlett Packard have shown meme stock-like volatility, with IBM adding $150 million in market cap within 10 hours, indicating a shift in market sentiment.
- Profitability Concerns in AI: While users of AI products may see substantial margin improvements, Melker expresses doubts about the long-term profitability of these AI companies, suggesting they may struggle to achieve sustainable earnings.
- Bitcoin Market Status: Melker notes that Bitcoin's appeal has waned, remaining stagnant at $63 despite positive news, indicating a lack of genuine buyers and reflecting diminished confidence in the cryptocurrency market.
See More
NASDAQ 100 Pre-Market Indicator Declines Significantly
- Market Indicator Decline: The NASDAQ 100 Pre-Market Indicator fell by 325.29 points to 30,245.95, indicating weakened market sentiment that could impact investor confidence and subsequent trading strategies.
- Active Stock Performance: Nokia Corporation (NOK) dropped by $0.9604 with a trading volume of 12,232,913 shares, while its current mean recommendation remains in the 'buy range', suggesting optimism about its future performance.
- ETF Trading Dynamics: The iShares Bitcoin Trust ETF (IBIT) decreased by $1.19 with a volume of 10,958,984 shares, yet its price is still 1.44% above its 52-week low, reflecting ongoing market interest in cryptocurrency assets.
- Stock Recommendation Status: Broadcom Inc. (AVGO) fell by $68.13 with 4,118,593 shares traded, but its current mean recommendation is in the 'buy range', indicating that analysts remain optimistic about its long-term prospects despite price pressures.
See More
Nokia and BlackBerry's AI Transformation Prospects
- Nokia's AI Infrastructure Growth: In Q1 2026, Nokia secured €1 billion in AI and cloud orders, with AI and cloud revenue rising 49% year-over-year, indicating strong demand in AI networking infrastructure; however, analysts remain cautious with an average price target of $11.38, suggesting a 34% downside risk.
- BlackBerry's QNX System Advantage: BlackBerry's QNX real-time operating system powers critical systems in 275 million vehicles globally, and despite competition, the company believes its uniqueness in safety-critical applications is hard to replicate, with a $950 million royalty backlog indicating future growth potential.
- Market Sentiment and Stock Performance: Despite Nokia and BlackBerry's stock prices rising 219% and 156% respectively, significantly outperforming the S&P 500's 27% increase, market sentiment remains cautious, particularly for BlackBerry, which has an average price target of $4.18, implying a 59% downside risk.
- Retail Investor Optimism: On Stocktwits, retail sentiment for BlackBerry is rated as 'extremely bullish', while Nokia is rated 'bullish', with message volume surging 1,365% for BlackBerry and 2,954% for Nokia over the past three months, reflecting strong investor interest in both companies.
See More
BlackBerry Shares Drop 5% Amid Profit-Taking, Growth Phase Confirmed
- Price Drop Analysis: BlackBerry shares fell over 5% to around $9.75 on Wednesday after gaining nearly 10% the previous week, indicating profit-taking by investors following a one-year high, although the overall trend remains positive.
- Growth Phase Confirmation: CFO Tim Foote stated at the 2026 Baird Global Consumer, Technology & Services Conference that the company has completed its turnaround and entered a growth phase, with long-term trends in its QNX and Secure Communications businesses supporting future growth.
- QNX Business Outlook: QNX revenue is expected to grow up to 15% in FY27, with a $950 million backlog and FY26 sales rising 14% alongside a 20% increase in Q4 sales, highlighting strong momentum, particularly in robotics and industrial automation expansion.
- Buyback Plan and Market Signals: BlackBerry has renewed its buyback program, authorizing repurchases of up to 26.79 million shares through May 2027; despite the RSI nearing 87 indicating overbought conditions, technical indicators support a price floor around $8.50, suggesting the recent decline is a healthy correction rather than a bearish reversal.
See More
