MBLY - BlackBerry: Pivot To Software Should Work And Related Earnings Call Items

2024-04-01 05:50:33 ET

Summary

• BlackBerry is currently at a crossroads as pivoting away from mobile phones to software has not helped to stop the sales decline.
• With the change in leadership, a competitive cybersecurity product, and its QNX well positioned as the software-defined trend disrupts the automobile industry, it is a Buy with a $3.88 target.
• BB also has a plan to reduce operating expenses while gross margins are relatively high.
• On the other hand, there is demand uncertainty which can impact revenues causing stock volatility in case topline expectations are missed when financial results are announced in a few days.
• For those looking for more certainty before investing, this thesis also highlights the items investors can look for during the earnings call.

BlackBerry ( BB ) has just turned a new page in its long and tumultuous history with its CEO John Chen departing after ten years at the helm. With a new leadership led by John Giamatteo, the Canadian company is preparing to carry out another major restructuring consisting of separating its cybersecurity business from IoT which would then operate as two stand-alone divisions....

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