BlackBerry (NASDAQ: BBRY) stock etched back above $10 a share, since spending most of July below that level. Though the valuations are unfavorable for the former smartphone champ, speculators are betting again that the play on ADAS, IoT, and software.
A growth in earnings is not guaranteed in the near-term. Software sales lagged in the last quarter but analysts are forecasting upside. TD raised its price target to $11.50, up from $10, citing second-half potentials.
If customers add more users on Radar, BlackBerry’s software revenue would show meaningful improvements. The logistics market for package delivery is massive and needs security and effective messaging among all the technology nodes involved. Yet BlackBerry is not offering anything unique. That could slow the uptake of its technology.
FedEx (NYSE: FDX) is a positive opportunity to grow Radar’s business. Its success would lead to more customer wins. Radar must prove its practicality in facilitating deliveries among fleets. BlackBerry will likely trim prices to encourage companies to buy more hardware and add more users.
IP revenue is another unknown for BBRY stockholders. It may happen any time and when it does, the stock will go up. Last week’s positive trading action suggests investors are already betting on IP revenue coming in before it is even announced.
