Business & Investment

Three Reasons Investors Should Buy BlackBerry Shares Before Soaring In 2021

Turnaround play has become very popular these days. Picking up the strains in the tank for the coronavirus pandemic and riding the waves worked well for many investors.

The reality is a Canadian software company BlackBerry (TSX: BB)(NYSE: BB) Performance is not as good as other recent rebound plays. Despite more than doubling from the 52-week low, BlackBerry’s share has lost more than a quarter of its value since early December. However, I will explain why investors are not interested in the short-term performance of this stock. Rather, investors are advised to focus on these three long-term catalysts that should make this stock higher.

Amazon trading is still successful

TheĀ· Multi-year contract Inked BlackBerry with Technology Megacap Giant (NASDAQ: AMZN) December is still going on. The deal is large for BlackBerry shareholders and could create a new wave of investment in 2021.

The agreement gives Amazon access to BlackBerry’s IVY platform and improves data collection for all information collected by vehicle sensors. The platform is built on the full integration of BlackBerry’s QNX platform, allowing BlackBerry to offer a range of software solutions to companies such as Amazon. This could mean that future partnerships could be on the BlackBerry horizon. If such a partnership is realized, the company’s stock price could rise further.

Security and cybersecurity are more important than ever

BlackBerry’s track record as a laser-focused company on cybersecurity will be key to the long-term success of this stock. The company’s QNX and IVY platforms will move the company forward over time. BlackBerry CEO John Chen has completely shifted the company’s strategic direction towards cybersecurity-focused software solutions. I consider this long-term growth trend to be a major investment treatise for this stock as a play for long-term growth.

Long-term trend pandemic resistance

The trend to support the company’s software platform is relatively unaffected by the coronavirus pandemic. Short-term headwinds associated with pandemics have been linked to expectations of a slowdown in car production. In addition, car makers are adopting BlackBerry software slower than expected, which makes the company feel a little worse.

That said, the market has since shifted its overall sentiment to a much more optimistic and bullish stance. The continued growth of the EV segment and this partnership with Amazon are expected to drive BlackBerry shares up. Growth investors need to be careful. It’s a great idea to get a share with the dips you’ve seen in the last few weeks.

Speaking of great technology growth stocks …

This little TSX stock could be the next Shopify

One of the lesser-known Canadian IPOs has doubled in value in a few months, and renowned Canadian stock picker Iain Butler sees potential billionaire makers waiting. I’m …
He thinks this fast-growing company looks a lot like Shopify, so Iain officially recommended shares three years ago before it surged 1,211%!
Iain and his team have published a detailed report on this small TSX stock. Find out how to access NEXT Shopify today!

Click here for instructions.

John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors.Stupid contributor Chris Macdonald There are no positions in any of the listed stocks. David Gardner I own a stake in Amazon. Motley Fool owns shares in Amazon and recommends Amazon. Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: A long call of $ 1920 in January 2022 on Amazon and a short call of $ 1940 in January 2022 on Amazon.

Three Reasons Investors Should Buy BlackBerry Shares Before Soaring In 2021 Three Reasons Investors Should Buy BlackBerry Shares Before Soaring In 2021

Back to top button