Forget Apple Inc; Here’s Why I’m Bullish on BBRY Stock Instead
Is BlackBerry Limited (NASDAQ:BBRY) due for a comeback? Before you laugh in disbelief, hear me out. BlackBerry stock may be at the start of a long uphill battle, but there are several obstacles for it to overcome first.
Namely, it needs to gain back the faith of markets. After all, the long descent of BlackBerry was driven by a management team that could not adapt to new challenges. We saw BBRY fall from $138.87 to its current level of $7.49.
Many investors have lost a tremendous amount of money on BBRY stock. It looks like a broken company, its glory days all but forgotten. But doesn’t the predicament of BlackBerry remind you of another technology firm that lost its way?
Didn’t Apple, Inc. (NASDAQ:AAPL) rise from the dead to become the most valuable company on the planet? At Apple’s lowest point, there were few who would venture a bold prediction that the company could return from the grave. But I won’t repeat their mistake. Here’s the best-case scenario for a return of BBRY stock.
BlackBerry Stock is Due for a Comeback
The catalyst for a surge in BlackBerry stock will be the release of the company’s latest smartphone. I know what you’re thinking: so what? But I’m telling you, this time is different. (Source: “Is Priv the Droid BlackBerry Has Been Looking For?” Re/Code, November 2, 2015.)
This time, the fate of BlackBerry will get a little help from the Android operating platform. In a long-overdue manoeuvre, BlackBerry is using the operating system developed by Google as the software for the Priv, its newest creation.
With a five-inch screen and a slide-out mechanical keyboard, the Priv incorporates everything that consumers loved about BlackBerry. The safety and security features are still paramount to the success of BlackBerry, but the narrow and restrictive OS is what dragged the company through the mud.
Customers wanted a range of apps and Apple was eager to supply them. Seeing itself as the “white collar smartphone,” BlackBerry didn’t respond to changing market conditions. That proved to be a costly mistake, and stockholders paid the price.
What BlackBerry needs (more than its own Steve Jobs) is a viable product and marketing strategy. The actual phone needs to be exceptional, and then people need convincing in order to give it a chance. We must see increasing sales and heightened buzz.
Only then will BBRY stock regain some of its long-lost love with investors.
BBRY Stock Needs a Jump Start
Right now, BlackBerry phones occupy less than one percent of the market. In order to execute an Apple-like turnaround, BlackBerry is going to need a really good marketing angle. Why would customers give up their Samsung Galaxy phones or iPhones to take their chances with a BlackBerry?
The short answer: privacy concerns. With so much in the news about phone hacks and security concerns abound, BBRY stock will rebound off a desire for safety. At least that’s the plan according to BlackBerry’s Chief Operating Officer, Marty Beard.
“We want when somebody sees [our logo], they see security, privacy [and say] those guys own it,” said Beard. “Everything is focused on reclaiming or grabbing the space we feel like we should own, which is privacy and security.”
Pre-orders for the Priv are many orders of magnitude higher than other BlackBerry releases in recent years. The upside for BBRY stock is obvious when we consider that this phone removed the ultimate kryptonite for BlackBerry: the BlackBerry OS.