BlackBerry Limited (BB · NYSE)
Built for the Robot and Quantum age
BlackBerry no longer makes phones; it sells the hidden software that keeps cars, medical devices and robots running safely, plus encrypted communications used by governments.
Bull case for BlackBerry Limited
Every safety-critical shipment pays a royalty
Each car or machine running QNX pays a royalty, so shipments compound into recurring income.
Robotics opens a market beyond cars
Robots, medical and industrial machines need the same certified software that cars already use.
Government encryption business funds the rest
Encrypted messaging sold to governments renews annually and generates cash for reinvestment.
Bear case for BlackBerry Limited
Car makers control the royalty timing
Royalties only arrive when vehicles are built, so carmakers' cycles dictate BlackBerry's income.
Free open-source software competes for designs
Engineers can choose Linux or in-house software instead of paying for QNX licences.
Government orders arrive in lumps
Large public-sector contracts close unpredictably, making the encryption business uneven quarter to quarter.