It seems like a million years ago when former President Barack Obama proudly displayed his BlackBerry (NYSE:BB) phone device. That was back in the day, when BB stock holders were enjoying their glory days.
And yet, that wasn’t the ideal time to take a long-term position in BB stock as the price declined considerably during the 2010s. On the other hand, the company is still here and it’s actually received a lot of attention lately.
Or more accurately, BB stock has received the attention as its price action has been wild. A veritable army of Reddit posters decided to put this little stock under the spotlight, thereby inflating its price by several multiples.
We can assume that BlackBerry wasn’t responsible for this. Nonetheless, it leaves open the question of whether it makes sense to own BB stock now. The answer might surprise you as BlackBerry’s comeback will likely have nothing to do with Reddit.
BB Stock at a Glance
Without a doubt, the users at the subreddit known as r/wallstreetbets have a powerful impact on certain stock prices.
At the beginning of 2021, BB stock was flying under the radar for most stock traders. The share price was close to $6.50, and the stock was just drifting along.
That changed suddenly when Reddit users recently focused their attention on BB stock and a handful of others. It’s been said that they were on a mission of justice to put some short sellers out of business.
In other words, the r/wallstreetbets folks weren’t necessarily focusing on the company itself. Still, they and other participants managed to bid the BB stock price up to an astonishing $28.77 on Jan. 27.
Chasing after stocks that have gone parabolic isn’t always a great idea, and BB stock provides an excellent example of this. The share price fell to the $13 area by Feb. 12, but that means you can own the stock at a more favorable price point if you choose to buy it.
Reddit? Forget It
In analyzing BB stock, we have a perfect opportunity to get back to basics. Like Warren Buffett, we should strive to own a stock because we believe that the company has a promising future.
Therefore, it is not advisable to buy BB stock solely based on what some folks at Reddit have to say about it. Fortunately, there are company-specific reasons to own BB shares.
Really, it’s not fair to call BB a “meme stock” or to consider BlackBerry a legacy company. For one thing, BlackBerry isn’t just about phones anymore. In fact, the company shifted away from that business model a while ago.
BlackBerry proved its relevance recently when the company expanded its partnership with Chinese Internet search service provider Baidu (NASDAQ:BIDU).
Through this arrangement, BlackBerry’s QNX model embedded software will provide the foundation for Baidu’s Apollo autonomous-driving platform.
Driving the Future of Tech
As Wang Yunpeng, senior director of the technology department at Baidu’s Intelligent Driving Group explains, “The BlackBerry QNX software performs well in functional safety, network security and reliability, while Baidu has achieved long-term development in artificial intelligence and deep learning.”
Clearly, the team-up with Baidu is a great fit for both companies.
And speaking of team-ups, BlackBerry has also partnered with self-driving vehicle developer Motional to deploy BlackBerry’s QNX Black Channel Communications for Motional’s driverless systems.
BlackBerry asserts that its QNX technology is embedded in more than 175 million vehicles on the road today. Collaborating with Baidu and Motional is a quantum leap forward for BlackBerry as the company strives not only for relevance, but even dominance in self-driving tech.
The Takeaway
You might not have given BB stock much thought until the Reddit crowd put it in the limelight.
Yet, owning BB stock today isn’t about the limelight. It’s about getting back to basics – and investing in a company that’s still a tech innovator.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
