We came across a bullish thesis on BlackBerry Limited (BB) on wallstreetbets Subreddit Page by NYCandrun. In this article, we will summarize the bulls’ thesis on BB. BlackBerry Limited (BB)’s share was trading at $5.58 as of Feb 20th. BB’s forward P/E was 52.91 according to Yahoo Finance.
A driverless vehicle navigating city traffic, equipped with ADAS and safety features.
BlackBerry is far from a dead brand or a failed smartphone company—it is an entrenched, high-margin infrastructure software business that has remained under the radar amid the AI-driven stock rally. While software companies even loosely tied to AI, IoT, or automation trade at premium valuations, BlackBerry, which powers over 255 million vehicles and counting, continues to be valued as if it has no future. The reality is quite different. BlackBerry dominates real-time, safety-critical automotive systems with its QNX operating system and is now expanding its footprint with IVY, a cloud-based vehicle data platform co-developed with AWS. IVY allows automakers to process, analyze, and monetize vehicle sensor data in real time, making it exactly the kind of AI-adjacent, SaaS-like business that should trade at significantly higher multiples. Yet, the market currently assigns it zero value.
BlackBerry’s QNX software is embedded in 255 million vehicles and continues to grow at a rate of over 20 million new installations per year. The company’s backlog has increased 27% year-over-year to $815 million, providing forward revenue visibility. IVY has already secured early adopters like Foxconn’s MIH EV platform, Dongfeng, and Mitsubishi Electric, showing real industry traction. Meanwhile, BlackBerry’s cybersecurity division, which generates $350 million to $365 million annually, has stabilized after years of underperformance. This business, now focused on high-trust government and enterprise contracts, is profitable with a $280 million ARR and improved margins of 65%. Despite these strong fundamentals, BlackBerry remains dramatically mispriced, offering an attractive entry point before the market catches up.
The re-rating process could begin as soon as BlackBerry’s upcoming earnings report on April 2nd. If the company provides strong IVY guidance, it could immediately spark investor interest and drive a valuation reset. Even without IVY, QNX alone justifies a higher multiple. Given that every other infrastructure software business with comparable positioning has already seen its valuation rise, BlackBerry is likely to follow. The current setup offers a significant margin of safety, with substantial upside potential. If the market starts valuing BlackBerry correctly, the stock could trade between $12 and $18 within the next two to three quarters. If IVY scales faster than expected, the upside could be even greater.
At present, the market is treating QNX like a legacy asset, ignoring its continued growth and importance in software-defined vehicles (SDVs). Automakers are shifting toward in-car software subscriptions, over-the-air upgrades, and data monetization—exactly the trends that IVY enables. If IVY becomes the industry standard for in-car data processing, BlackBerry’s valuation could move toward SaaS multiples instead of embedded software. Meanwhile, the cybersecurity segment, which the market has ignored for years, is now a stable, cash-generating enterprise software business, further reinforcing the investment case.
BlackBerry’s current valuation, at roughly 5x sales, is far below its true potential. Applying reasonable multiples, QNX alone is worth $2.5 billion to $3.5 billion, while cybersecurity could be valued between $700 million and $1.2 billion. IVY, which has yet to be fully recognized in the stock price, could be worth billions if it gains traction. A re-rating to infrastructure software valuations puts BlackBerry’s fair value at a minimum of $12–$18 in the near term, with the possibility of exceeding $20 if IVY gains widespread adoption.
This company is a real AI-adjacent, embedded infrastructure software business that has been overlooked. The market’s mispricing won’t last much longer. QNX is a growing, indispensable asset in the auto industry. IVY has real partnerships and enormous potential. Cybersecurity is now an asset, not a liability. One strong earnings report with positive IVY guidance could catalyze a major re-rating, and when that happens, BlackBerry won’t be trading anywhere near its current price.
BlackBerry Limited (BB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held BB at the end of the third quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of BB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.