Ignore All The Hype Around BlackBerry Ltd (BBRY) Stock

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EMM Is Only Growing Because Of Acquisitions & Strong Sector Fundamentals

BlackBerry Ltd (NASDAQ:BBRY) is also hoping to see big gains in its enterprise mobility management (EMM) division due to bullish fundamentals across this space in general. In fact, this $2 billion market should continue to grow at a healthy clip going forward, mainly due to companies needing to integrate mobile devices into a central structure. Many believe that EMM will drive future growth for the company, now that Blackberry’s market share has increased meaningfully to 15% as a result of recent acquisitions.

However, investors should remember that the likes of IBM & Microsoft have basically ignored EMM up to now but could easily enter if they wanted to. This is why margins can be so volatile in the tech industry. Very few companies have huge market shares in their sectors, which is why downside risk is always a distinct possibility. Blackberry simply does not have enough market share nor is a cheap enough producer to deserve a competitive advantage in EMM in my opinion.

Also read: BlackBerry Stock: Don’t Gamble, Look At The Data Points

Summary

To sum up, BlackBerry Ltd (NASDAQ:BBRY) has been in the news a lot lately due to the setting up of its new self-driving hub in Canada along with licensing of its mobile phones to China’s TCL (2). EMM & QNX will be the drivers going forward. But the risks in BBRY stock continue to remain elevated, in my opinion. There is limited downside protection, so investors should remain very cautious about investing in BlackBerry stock.

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The article Ignore All The Hype Around BlackBerry Ltd (BBRY) Stock originally appeared on amigobulls.com. Watch our analysis video on BBRY

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Additional Links:

(1) https://www.bloomberg.com/news/articles/2016-10-31/blackberry-ford-extend-partnership-to-develop-car-software

(2) http://www.zdnet.com/article/blackberry-licenses-brand-to-chinese-phone-maker-tcl/

(3) http://amigobulls.com/stocks-to-buy/top-tech-stocks/?ref=il&ref=im

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