BlackBerry Ltd (NASDAQ:BBRY)
BlackBerry is a company that has come across some big problems as of late. However, the company seems to be making moves that will push it in the right direction. While I may have been bearish on the stock over the past few years, recently, my opinion has changed in a big way for some very good reasons. Today, we'll talk about why I'm bullish on BBRY and why you should be too!
BlackBerry's Movements In Smartphones
One of the biggest reasons that I'm bullish on BBRY is its movements with regard to the smartphone industry. You see, BlackBerry is a company that can be largely credited for the innovation that led to the smartphone industry as we know it today. However, over time, competition started to flood the smartphone market, and soon enough it was determined by the consumers that the BlackBerry QNX operating system wasn't quite what they wanted. Instead, everyone seemed to want Apple's iOS or Google's Android.
While BBRY tried to push along with QNX as long as it could, the company came to a crystal clear realization last year. QNX simply wasn't working out. As a result, BBRY announced the launch of a new smartphone known as Priv. This smartphone came with the security and hardware that BlackBerry is known for in combination with the overwhelmingly popular Android operating system. While the price tag on the phone was a bit high for my taste, plenty of people loved it. In fact, BBRY got so many orders for Priv that they had to delay shipments of the new phone.
Since then, the company has made several announcements with regard to its plans moving forward. One of the most important is that BlackBerry will be coming out with an entire line of phones that run on the Android operating system. It's my opinion that this will push their handset department to a profitable level.
Software Will Lead To More Big Gains
Another big factor for BBRY is software. In fact, on the company's most recent earnings report, its software segment took center stage. In non-GAAP software and services revenue, the company realized revenue that more than doubled on a year-over-year sense, gaining up to $153 million. For the entire fiscal year of 2016, BBRY software gained 113% to come in at $527 million in revenue. So, if you're not very excited about the incredible movement we're seeing in the smartphone space out of the company, software and services is the next area you should look.
QNX Operating System
Finally, BBRY may not have done very well with the QNX operating system in its smartphones, but that doesn't mean that the company has thrown the technology away. In fact, it may come as a surprise, but the QNX operating system is already generating a decent amount of revenue in the Internet of Things space. The reality is that QNX is being used to make sure lights turn from green to red in traffic zones, to make sure medical technology is updated in the hospital, and to make sure that products are manufactured correctly in manufacturing equipment. All in all, QNX may not be right for smartphones, but BBRY has found a use for the operating system.
The Bottom Line
The bottom line here is that BBRY may have been down for quite some time. However, the company hasn't been knocked out! Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from this company as all of the positive changes we've seen start to lead to profits by the end of the year 2016.