Citron and Macquarie’s bullish notes on BlackBerry (BBRY) are giving the stock a huge boost on the market. But the nearly 23% monthly gain may stumble. Positive sentiment is helping the stock, but fundamentally, BlackBerry has lots of work ahead.
Toyota Dumps QNX
Starting in 2018, Toyota Motors (TM) will go open-source for its 2018 Camry. This is a blow for BBRY, as OEMs are staying with QNX. Ford Motor (F) even increased the content per vehicle, after dumping the Microsoft-based (MSFT) Infotainment system. The change gave BlackBerry a boost in revenue, at the time the deal was announced a few quarters ago.
Toyota’s decision may prove fatal if hackers break into a Toyota system powered by the Linux-based platform. Though the move saves Toyota money, the company could put itself at a disadvantage as other automobile companies put security as a high priority.
BBRY In the Enterprise
For the time being, BlackBerry’s BES UEM software is central in the company’s revenue growth strategy. The company sunset BES 10, a move that will force enterprises to upgrade to the latest BES UEM. The latest version supports Android and iPhone devices, whereas BES 10 only supported BBOS10 devices.
Now that BBRY is winding down BBOS10, its focus on selling more UEM licenses will help shift the company’s revenue source mostly in software services.
