BlackBerry Limited (BB): A Bull Case Theory

We came across a bullish thesis on BlackBerry Limited on Valueinvesting subreddit by EndLessCode001. In this article, we will summarize the bulls’ thesis on BB. BlackBerry Limited’s share was trading at $3.5600 as of February 2nd. BB’s trailing and forward P/E were 89.25 and 21.19 respectively according to Yahoo Finance.

BlackBerry Limited (BB) is no longer a legacy handset maker but a repositioned software and services company focused on cybersecurity and embedded IoT infrastructure, targeting environments where reliability and security are mission-critical. Today, the business is centered on endpoint protection and secure communications for regulated enterprises and governments, alongside its embedded QNX operating system, which is deeply integrated into automotive and industrial systems.

While overall revenue has transitioned from decline toward stabilization, profitability remains marginal as the company works through weak operating leverage despite software-level gross margins. Importantly, BlackBerry maintains a manageable balance sheet with net cash, giving it time to execute, though that time is not unlimited.

The cybersecurity segment is not positioned as a category leader but serves sticky, regulated customers, making it a stabilizing, credibility-driven business rather than a growth engine. The true crown jewel is QNX, which is embedded in millions of vehicles and powers ADAS, infotainment, and safety-critical systems.

Automotive software adoption moves slowly, but once embedded, it is highly durable and difficult to displace, creating long-term optionality as vehicle software complexity increases. Increasingly, the market views BlackBerry as a collection of assets rather than a cohesive growth company, opening the door for value-unlocking actions such as a partial divestiture, joint venture, spin-off of QNX, or a strategic acquisition.

At its current ~$2–3 billion market capitalization, BB trades with heavy skepticism, reflecting fatigue around repeated turnaround attempts rather than embedded asset value. The stock effectively functions as a call option on management execution, QNX monetization, and asset separation. Risks remain meaningful, including execution missteps, prolonged timelines, competitive pressure in cybersecurity, and delayed realization of QNX’s value.

However, for patient investors comfortable with uncertainty, BlackBerry offers long-duration optionality with asymmetric upside, supported by a valuation that already prices in pessimism and a long-term valuation estimate of $14.53 if the thesis plays out.

Previously, we covered a bullish thesis on BlackBerry Limited (BB) by NYCandrun in February 2025, which highlighted its high-margin automotive software via QNX, growth potential of IVY, and stabilized cybersecurity business. BB’s stock price has depreciated by approximately 36.20% since our coverage due to market skepticism. EndLessCode001 shares a similar thesis but emphasizes software repositioning, optionality, and strategic value unlocking.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.