An old favourite seems to be stirring the pot again. After years of being in the Red CNN reports that Blackberry (RIM) posted a profit, sending its stock soaring by almost 15%.
To put that into perspective, BlackBerry stock has done better than Apple and the FANG of four that rule tech — Facebook, (FB, Tech30) Amazon, (AMZN, Tech30)Netflix (NFLX, Tech30) and Google (GOOG) — so far in 2017.
The news marks a true turning point for the once dominant smartphone company that has since shifted towards software. Blackberry has found a new life in selling its touted security features that made it so popular among government and business officials.
The Guardian says that “sales at its high-margin software unit had hit a record and the outlook for the rest of the year was robust, boosting investor confidence in its turnaround strategy.” The shift in strategy took Blackberry years to execute but under the leadership of CEO John Chen, the company has embraced its new direction.
“There are some exciting growth opportunities,” said a Morningstar analyst, Ali Mogharabi, citing BlackBerry’s progress in getting its technology into self-driving cars. Last week the company announced a deal with the car parts supplier Delphi Automotive on a software operating system for self-driving cars.
Exciting new endeavours have given investors renewed hope in the Canadian tech company. With their software business sustaining the company’s growth they can finally expand into new projects and focus on growth once again.
While investors shouldn’t expect them to become top dogs in the smartphone game =, this may mean that Blackberry has the potential to be a valuable stock once again.
To read CNN’s article on Blackberry, click here.
To read The Guardian’s take, click here.
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