BlackBerry (NYSE:BB) isnt the same company it was a decade ago, transitioning from a consumer electronics maker to an enterprise software and intellectual property play. Its also become a so-called meme stock. But in this Fool Live clip, recorded on June 25, Fool.com contributor Matt Frankel, CFP, takes a closer look at BlackBerry to see if it might be worth a closer look for long-term investors.
Matt Frankel: But BlackBerry, its not the same BlackBerry you knew and loved 10 years ago. I dont know if you had a BlackBerry phone at any point. I certainly did. I thought it was the coolest thing I could type onto, something I can hold in my hand. When I got my first BlackBerry, it wasnt the normal the text where youre doing a little number pad. But BlackBerry has evolved as the company, they are still around. I think it became a meme stock because people were like Wait, BlackBerry is still around?
Blackberry is almost a $7 billion company still, believe it or not. They dont produce many consumer-facing things anymore, which is why a lot of people arent too familiar with them anymore. Theyre up 80% year to date. They are the least shorted stock out of the six that I really researched deeply. Short interest is less than 9%, which is still elevated, but its not meme stock-ish. Theyre mostly a licensing play these days, they produce some software systems. Baidu is a big client of theirs. In conjunction with Amazon Web Services, theyre producing a big platform for the electric vehicle industry thats really looking promising. I think I saw 23 out of the top 26 EV producers are interested in using this platform once its up and running. When they first started to pivot, their biggest asset was all the intellectual property they have, thats really where most of their intrinsic value comes from. I dont even know how many countless patents they had at first.
But this is a serious business. They just missed earnings, which is if youve noticed, the stock is down today, thats why. They just reported their earnings yesterday, I believe. They missed earnings, but this is a very real business, big IP play. Maybe we should have included it in the EV hour with all their EV efforts going on, which is something that is really interesting to me about the company that Id like to dig into even further. Thats BlackBerry. I ranked it my No. 5 out of this group of 10, or out of the 11 including cash, and this was Anands No. 7. We both ranked this pretty much in the middle of the pack, a real business, but I guess nothing were too excited about right now.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends BlackBerry and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.>
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