Nate
·The former meme stock BlackBerry surged on blowout earnings last week — the bull case has nothing to do with phones. When you think of BlackBerry, you probably picture the clunky QWERTY keyboard and yearn for the pre-AI slop era. But for many traders, that nostalgic memory could have been getting in the way of evaluating a rising star.
In its first-quarter earnings on Thursday, the cell-phone-turned-B2B-enterprise-software-company blew past estimates with revenue up 26% and a 44% EPS beat after back-to-back 30%+ beats before that. The company hiked its full-year profit forecast to 16 cents to 20 cents per share with revenue between $594 million and $621 million.
“The market still misdefines BlackBerry,” analyst Suthan Sukumar of Stifel said Tuesday in a note to clients. “This is…a mission-critical software layer in the physical AI stack and a dominant partner to silicon leaders like Nvidia, Qualcomm, and AMD powering the build-out from cloud to edge, across cars, #Robotics Revolution 🦾🤖🦿 , factories, and medical devices.”
QNX, BlackBerry’s real-time operating system, runs inside of 275 million cars worldwide. Modern autos generate terabytes of daily data, from tire pressure to monitoring driving behavior, and QNX is the foundation beneath all of it. #Auto Future
About 20% of QNX revenue now comes from noncar segments. Uses in robotics, medical devices, drones, and industrial automation are growing. In June, Nvidia announced Halos for Robotics, and QNX is in the stack. Per QNX’s own research, 85% of robotics engineers expect software’s role in their field to increase over the next three to five years. #Gadgets
On Friday, when Bloomberg asked if consumers could swap out iPhones for the nostalgic keyboard again, Giamatteo said “I don't think you'll see us get back into the phone game anytime soon.”
BlackBerry shed its consumer identity years ago. What’s left is a profitable B2B software company that’s already embedded in tech infrastructure from cars to robots to drones. As physical #Artificial Intelligence scales, the demand for trusted safety-certified software is likely to grow.
https://sherwood.news/mar..
