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Amidst several new signs that BlackBerry (NYSE:BB) The IVY initiative will be extremely lucrative, I remain very bullish on BB stocks.
IVY is the store of automatic applications that BlackBerry is developing in partnership with Amazon (NASDAQ:AMZN). The company is making significant progress on the project and plans to release significant information on it in early January.
Additionally, there are signs that investors and pundits are getting much more bullish on BB stocks.
More signs that IVY will be very successful
General Motors (NYSE:DG) said it plans to make $ 2 billion by selling “subscription services” to cars, Techcrunch reported on October 8. Additionally, the automaker believes the services can generate up to $ 25 billion a year by 2030, the website said.
And earlier this month, the Wall Street Journal reported that automakers are “increasingly developing vehicles as digital devices, with the ability to remotely deliver new services and features to the car that could make it easier and more fun to use, while generating additional income. “
Ford (NYSE:F) Doug Field, who worked at You’re here (NASDAQ:TSLA) for five years, cited autonomous driving systems as a service for which drivers will pay a subscription. He added that “the content will be absolutely à la carte”.
In other words, drivers will be able to order car subscription services individually, just like a car owner. Apples (NASDAQ:AAPL) iPhone can purchase apps individually from the company’s App Store.
As I have said in the past, IVY will be one of the leading automotive app stores. BlackBerry, with its QNX operating system which is currently present in nearly 200 million vehicles, is well positioned to allow automakers and other application developers to sell subscription services to drivers.
BlackBerry makes significant progress on IVY
In a blog post published on October 29, BlackBerry announced that it had “released an early access version of the platform to select ecosystem partners.” The company added that “Earlier this fall, BlackBerry also released a product demo of solutions powered by BlackBerry IVY, focusing on electrification use cases. This demo has been presented to several automotive customers and partners.
The post also noted that the company had launched the BlackBerry IVY ™ Innovation Fund to invest in start-ups that leverage information from the BlackBerry IVY platform. During this time, the company has established partnerships with several companies that have developed products for vehicles, including Amazon, Berkshire Hathaway’s (NYSE:BRK.A) GEICO and TELUS Communications.
A number of interesting startups have also partnered with BlackBerry on IVY, including Electra Vehicles, which has developed an electric vehicle battery management product, and Ridecell, which has a “platform fueling digital transformation. and automation for fleet-oriented businesses “. Another promising start-up partnering with BlackBerry on IVY is CarIQ, which enables “secure vehicle-based payments”.
Importantly for owners of BB shares, BlackBerry has indicated its intention to do a public demonstration of IVY at the Consumer Electronics Show (CES) – scheduled for Jan. 5-8. Chances are, the demo – and the new information BlackBerry may release in conjunction with it, will make many investors much more bullish on the company’s shares.
More optimism towards BB stocks
There have been several signs recently that investors and pundits are, on the whole, increasingly optimistic about the Canadian company.
First, stocks jumped nearly 18% in the month that ended November 5.
Meanwhile, on October 26, Seeking Alpha posted one of its few bullish columns on the company’s shares. (Prior to the October 26 column, the website had published 11 articles whose authors were tagged as “neutral,” “bearish,” or “very bearish” to BB stocks. Prior to October 26, the last article of an author was bullish towards the name was published on June 30.) The author of the Seeking Alpha column, Monplanet Capital Management, estimates the shares are currently worth $ 23 each.
And while the majority of recent articles published by InvestorPlace on BlackBerry are negative, two of the website’s authors other than myself have recently been bullish on the company. In his October 22 column, Mark R. Hake, a CFA, wrote that the company’s shares “could be worth up to … $ 15.22 within two years.” He noted that BlackBerry reported “positive free cash flow (FCF) in its fiscal second quarter.” Meanwhile, the title of David Moadel’s October 26 article proclaimed that “BlackBerry has evolved into a compelling cybersecurity investment.”
Finally, on October 18, TheStreet published an article titled “3 Reasons to Buy BlackBerry Stock Now”.
The result on BB Stock
IVY, BlackBerry’s expected to be very lucrative automotive app store, is progressing well and will be publicly unveiled soon. Meanwhile, investors and pundits seem to be getting much more bullish on the company’s shares.
As a result, the stage is set for a big rally in BB stocks over the medium term, making BB stocks a good buy for most investors.
As of the publication date, Larry Ramer was long in BB stocks. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Larry has researched and written articles on US equities for 14 years. He was employed by The Fly and Israel’s largest business newspaper, Globes. Some of his highly successful contrarian picks include solar stocks, Roku, and Snap. You can reach him on StockTwits at @larryramer. Larry started writing articles for InvestorPlace in 2015.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.