Stock Insight: BlackBerry (TSX: BB)

Canadian investors need no introduction blue raspberry (TSX: BB) (NYSE: BB). Most people will know that the company was once a world leader as the most innovative smartphone company. However, his business began to wane and one bad decision after another led to Apple eventually surpassing it to become the consumer giant it is today. In this article, I’ll talk about the current state of BlackBerry and whether I think it’s worth the investment.

What does the company do now?

Currently, BlackBerry’s mission is to create a connected future that consumers can trust. This means the company has moved from its goal of being a leader in the smartphone industry to a business that secures online connections. It will be very interesting to see how BlackBerry becomes an Internet of Things competitor.

According to its website, BlackBerry protects more than 500 million endpoints, including 175 million cars. Its client roster is very impressive, as it includes all G7 governments and 18 governments within the G20.

With over 39,000 patents, the company believes it is well positioned to protect approximately 96% of all cybersecurity threats in today’s landscape, including all endpoints. It is currently continuing to invest in the development of innovative products, channeling 24% of its revenues into research and development.

Is it worth investing?

The history of BlackBerry’s shares was not the most illustrious. The company has grown from one of the most promising stocks on the market to become the largest company in Canada. Since then, its stock has plunged to a new low after a new low. At the time of writing, BlackBerry shares have fallen more than 95% from their all-time high.

However, I said earlier that the turnaround potential in this company is quite tempting. The company’s CEO, John Chen, is highly respected. He is known for leading Sybase during its turnaround and eventual acquisition by LYMPH.

Its latest earnings report, in September, showed promising numbers. The company reported non-GAAP revenue of $ 266 million for the second quarter of 2021, compared with non-GAAP revenue of $ 261 million for the same quarter last year. The company also reported that 90% of its software product revenue is recurring.

Finally, BlackBerry has included a list of last quarter results. First, he was able to co-develop the self-driving domain controller for Xpeng’s new high performance electric vehicle.

In addition, BlackBerry announced that new customers using its BlackBerry Spark suites included Rolls Royce, the US Air Force, the UK Department of Defense and the Royal Canadian Mint. This demonstrates the confidence of government and luxury organizations in the BlackBerry product offering.

I think it is still a bit early to open a position in the company. Personally, I’d rather find excellent companies that have a major shift in being the market leader. However, BlackBerry appears to be on the right track. Assuming this progress continues over the next couple of years, we could indeed see an excellent turning point history.

Silly takeaway

BlackBerry is no longer a smartphone company. It now works to secure endpoints for a variety of different industries. While I wouldn’t have initiated a position in the company yet, BlackBerry has shown continued progress and could prove to be an excellent turnaround story.

Silly collaborator Jed Lloren owns stock in Apple. David Gardner owns stock in Apple. The Motley Fool owns stock and recommends Apple. The Motley Fool recommends BlackBerry and BlackBerry.