Goldman Sachs Penny Stocks: Top 12 Stock Picks

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7. BlackBerry Limited (NYSE:BB)

Goldman Sachs’s Q1 2025 Stake: $7,372,746

Share Price as of July 3: $4.23

Number of Hedge Fund Investors In Q1 2025: 20

BlackBerry Limited (NYSE:BB) is one of Goldman Sachs’ top penny stock picks. On June 15, Raymond James kept a “Market Perform” rating on BlackBerry after better-than-expected quarterly results.

The company posted revenue of $121.7 million—down 1% from last year but higher than the $112.3 million estimate. Adjusted EBITDA came in strong at $16.4 million (vs. $4.8 million expected), helped by $4.5 million in government grants. BlackBerry remains financially stable, with a current ratio of 1.72 and a debt-to-equity ratio of 0.33.

Despite first-quarter outperformance, the company raised its full-year revenue outlook by just $4 million and Adjusted EBITDA guidance by only $3 million, signaling a cautious tone. Its QNX auto software division added about $5 million above expectations but kept full-year guidance unchanged due to uncertainty, as all four major automakers paused their projections.

BlackBerry’s Annual Recurring Revenue (ARR) stayed flat at $209 million, down 1% year-over-year, and its IP licensing brings in $24 million per year. Raymond James noted that only 50% of Adjusted EBITDA is expected to convert into operating cash flow this year, mainly due to restructuring costs and taxes in Europe.

BlackBerry Limited (NYSE:BB) is a Canadian enterprise software company. It provides cybersecurity, secure communications, and embedded systems software to governments, automakers, and industrial clients. Its key products include BlackBerry QNX (used in over 255 million vehicles), BlackBerry UEM for endpoint management, BlackBerry AtHoc for crisis communications, and BlackBerry IVY, a vehicle data platform developed with AWS.

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