Blackberry (BB) Stock Good & Bad News Before Earnings By LEYA

Hello welcome back to another video on blackberry today, we're doing a recent news analysis of some let's say: press releases that recently came out on blackberry's side that looked pretty promising, despite the fact that blackberry keeps uh tumbling. Now, let's be clear here: uh tech hogs have been. You know, hit super essentially over the past few days, so it's well in line with that as blackberry's prices, tech stock, currently on the market with its current multiples, but there's some pretty striking good news, and this is uh pre to their q4 earnings. That's going to be released in about a couple of days from now, which I'm very, very excited for, but so blackberry right now is at 9.63 dollars per share. There's a long-standing joke in the blackberry stock community, where every time something good comes out about the company, the stock just keeps going down. It's like.

Oh, oh, they announced a partnership with x company with let's say Amazon. For example. I mean they actually did but say apple. For example, oh stock price drops to five dollars per share. It's a funny joke.

They obviously didn't partner with apple. As far as I know, uh as of right now for anything I know apple's getting to the car business by 2024, we'll see what kind of solutions they provide for their platform for their businesses platform blackberry is, in my opinion, the best in class, with their plethora of solutions for Adas, entertainment and things of that nature as well is, of course, the cloud provider uh into the future, with uh the iv platform, a vehicle data platform for app developer. I mean you guys, know the story, but my point is that library is going down over and over and over its down to nine dollars per share five billion dollar capitalization, which is absurd to me even on a stop basis, some of its parts' basis. I mean this thing is worth I think nine billion dollars conservatively, but I guess uh. This is what analysts are pricing in uh? Maybe they don't see what I see.

Who knows what it is? Maybe I'm just wrong, but anyway it's just my opinion. Um. Let's go right into the news: blackberry of course, the intelligent security company, and I'm really starting to look at it differently. Now, I'm looking at it as not a phone company, I'm starting to see its sort of branding and its marketing uh come to light, and you know it's having an impact on me. You can see how they've been changing the way they even their website looks uh they're, really trying to uh.

You know, look got a guy he's got a massive uh, beautiful touchscreen laptop there in a very urban city, they're, really trying to uh get to this sort of IOT solutions and cybersecurity and so forth. The branding has changed dramatically on the website over the time that I've been making these videos uh trying to establish a connection. That's a network effect on security for IOT, at the edge point and so forth, but anyway, with that without further, let's get right into it. So first things, first march, 25th uh iv innovation fund to drive future of transportation. Basically, this fund is an innovation fund which gives developers about a hundred thousand dollars in AWS credits, to let's say, create domain specific uh applications uh through AWS, activate a program that has helped hundreds of thousands of early stage startups, accelerate their growth and development.

This includes access to activity, activate console a self-service platform that connects startups to insights, typical guidance and more to help build their businesses. You guys remember those of you who are in software development. There was like this, let's say: mobile boom, something like maybe 10 years ago, maybe a little more than that, maybe yeah, probably around 10 years ago, uh. If the new iPhone came out in 2008, the first one and then a couple of years later, you know, obviously different providers followed with competent, a competitive sort of products, and then there was this huge mobile boom. I mean everybody and everybody wants to create applications and everybody was downloading the application.

So there's huge demand for applications of any kind, and so a lot of development happened there, and my suspicion is that we're going to have something similar uh with automotive. Once the conversation complexity reaches its point, and it becomes easy enough through these SDKs as IB is going to provide for all these developers to uh. You know create applications that obviously confined to specific security standards that hopefully, blackberry can provide, as they have been able to provide already with their ANX platform, not from a development standpoint, but from a security standpoint and with how they can sort of uh manage those endpoints, but anyway, fantastic uh innovation fund. Here, I don't think it's going to be, let's say very uh: it's not going to have you know much of an effect on their actual, their actual, let's say, stock performance or the revenue, but it should build their brand, which is an important part of this. I also drive, hopefully in indirect revenue, from more and more developers going on their platform as opposed to spending time somewhere else.

So the blackberry iv innovation fund underscores blackberries commitment to developing blackberry iv ecosystem to allow OEMs smart mobility providers, fleet operators and developers who alike to leverage their rich insights from the next generation of intelligent connected vehicles. The connected vehicle market is evolving, with a tremendous rate of innovation, blackberry IBS potential to play a pivotal role in enabling a rich ecosystem of solutions, as I mentioned that improve and enhance driver and passenger experiences and ultimately revolutionize the way we get from a to b says the SVP corporate development strategic partnership veto Lorenzo, I pronounced that name wrong. The blackberry iv innovation fund will be powerful to enable both established and start-up partners to develop uh to benefit from blackberry, ivy's, powerful data insights help us drive enhancements across the entire transportation industry. I mean, let's be clear here I mean I'm sure you guys know, and I think it's pretty obvious- that most cars, or newer cars at least tend to have a lot more sensors a lot more data points than you could probably get from a digital smartphone. So the kind of creative capacity you can utilize um.

All you need is a specific infrastructure to support uh this kind of insights and, of course, a cloud solution that uh, hopefully is robust enough. Uh can supply that in a way, that's let's say: uh streamline for the average user. Uh we'll see if that works, um, but they've they've created a specific ecosystem and a development pipeline. That's maybe infrastructure that that is akin to something along the lines of a mobile experience. Um so hopefully they'll be able to do that which is fantastic, and I'm excited to see what blackberry iv is capable of doing and how well it perform now.

Uh they're one of the first ones to do as far as understand it, so they may, in fact you know, we'll see what happens there. Definitely something cool going on here and I know like I might even try developing something uh into the future uh if it's easy enough to develop with their platform. Okay, next up, we have Scania, chooses blackberry ANX for his next generation of vehicles. This is probably more substantive, although this is pre-earnings. So maybe sec doesn't see this as too much of uh, crazy announcements.

But Scania is a provider of transfer solutions in Sweden uh, including trucks and buses, and they chose ANX to provide safety, certified operating systems and hypervisor, of course, for its high performance computing platforms with its next electrical architecture. Generation and heavy goods vehicles effectively building the high performance backbone on a single base. We chose blackberry q next to the company's history and safety certified embedded software, combining with cybersecurity expertise, says the senior vice president of connected vehicles, autonomous embedded systems at Scania, using a single OS and hypervisor for a high performance system in the truck has a huge economic and technical benefit to operations and allows us to bring customer value to market quicker and more efficiently. As you guys do know, I'm sure you guys are well aware of the fact that Scania, um well sort of Sweden is one of the most sort of let's say progressive states in the world, they're they're making an impact uh. Actually they have made a substantial impact, one of the one of probably the the largest headquarters for technical technological development in the entire world, uh for its population.

I mean Stockholm produces some incredible software. Talking about the likes of you know, Minecraft, founder uh. Of course, I think Spotify as well. The know this. This small country in Northern Europe produces some high quality software and the technical infrastructure is bar none.

They provide solutions to the market that are absolutely incredible from a state standpoint. Of course, Scania is one of their solutions: providers at truck and buses and, of course, they're trying to build instructors to support smart cities, and things like that, I think ex is probably a solid, solid pick for them to choose just another. Hopefully, revenue, creative, uh business partnership for blackberry into the future. Of course, we won't see that prevail because, of course, their rocket economy. I think works on unit costs, as opposed to say revenue on the ANX platform.

All right. Last but not least, we do have something: that's not as great some negative news. I wouldn't even say this size. It's just. I think it's overblown here SSC tells blackberry to stop using non-gaap.

That's that's the revenue metric first highlighted by uh my market watch here. Basically, what this means is that well, what they want to do is use gap adjusted, so that means general accounting practices uh for, let's say um. How do I say this for releasing information about their revenue? In fact, blackberry did in fact miss revenue. If you it is it's, if it's with GAAP, so you know they're saying it's sort of maybe misleading or whatever else I mean it's a very easy fix. They did beat earnings on GAAP, and they didn't if you use GAAP on gap basis, so we'll see what they said here I mean look, it's just a simple change.

It's going to have really no negative effect. I think considering your deferred revenue and commission expense were adjusted to fair value at the time of acquisition pursuant to GAAP these non-gaap adjustments intended to eliminate the impact of purchase, accounting, substitute individually, tailored condition and measurement methods for those GAAP. As I see, road companies are not allowed to use individually tailored metrics when presenting financial results. So there you go um trend to zero due to elapse since acquisition blackberry, no longer offered non-gaap revenue figures, its financial results, reporting, starting with its fiscal year March 1st through February 28th 2022, fairly easy fix. Hopefully, as you see, into 2022 revenue increases uh.

Obviously, we've seen a transformation in their uh in the revenue stream from hardware 2017, making the predominant form of the revenue uh to now 2020, which we saw software uh being as predominant form or the other revenue from. As far as I understand it, in fact, 70 of revenue came from hardware in 2017, despite the fact that, throughout the entire time, despite the fact that I think so, the hardware sector uh within the revenue decreased 80 they've, actually remained flat for the past few years in terms of revenue. So you know where the revenue comes from has radically transformed. I think software uh sector is growing 20 to something percent in the revenue stream. Hopefully that continues into the future.

We'll shall see it feels like all these partnerships should have a potential effect on revenue at least into the future. As you know, as these things get rolled out per unit, but we shall see- I mean it's a matter of time, so to speak, but blackberry is at 9.63 per share now uh, it looks to me like it's a bargain, or at least getting to a bargain. You know if I can get it under eight under seven that'd, be fantastic, we'll see what happens at um at earnings soon. You know what I like this stock uh, but, of course, during due diligence, your own analysis, it's not financial device at all. Um blackberry is cool.

It's transforming out the technology stack, and you know I've talked to other individuals who are you knowing a lot more experts in cybersecurity than I am uh students. You know pursuing a master's degree in computer science, and they seem to also like the technological stack that blackberry provides and, of course, that doesn't transmit directly to a good business. Obviously, profitability uh things of concern and revenue grow their concern, uh free cash flow whatever, so that doesn't necessarily mean blackberry is a great company invest in, but at least you know, they're competent in terms of what they're able to provide to the market, and especially cybersecurity, which is a huge and growing market. You know we're seeing hacks happen all over thanks for watching have a wonderful day, guys, I'm looking forward to earnings hope you are to hope. You appreciate this.

These uh, this news, insight uh, let me know if you guys do with a like um, take care, join the discord, chat, I'd love to see you there for good conversation regards to blackberry or anything else. Bye, bye,.

Source : LEYA