BlackBerry stock has nearly tripled since the first week of January and continues to push further.
BlackBerry Ltd. (BB) has lagged over the last decade but it is time for the tech firm to rise from ashes once again. BB stock has almost more than tripled since the first week of 2021. As we write this in the pre-trading session, BB had soared over 41% to $19.78—trading at its 52-week high.
Investors have been taking interest in BlackBerry Ltd. Recently—with an average trading volume of just above 28.5 million. The stock looks highly bullish and has moved into the buying zone. Since Jan. 13, BB has skyrocketed up to 88%, which is one of its biggest rallies since Feb. 2000.
What’s pushing BlackBerry?
BlackBerry is moving towards a new phase where things are going to get bigger and better for the Canadian software firm. The major push that derived the BB stock in the past week was BB’s conflict settlement with Facebook. However, the terms of the settlement weren’t disclosed.
Back in 2018, BlackBerry filed a lawsuit against the social media titan, accusing Facebook of breaching Blackberry’s innovative messaging technology. After a two years court battle between the two companies, both have settled down their matter.
Another massive update for the company comes with its collaboration with the e-commerce giant, Amazon. BlackBerry has been lagging a catalyst and it will finally get it in the form of AWS collaboration.
In any sector which Amazon targets, the company makes sure that no stone is left unturned. That’s a big positive for BlackBerry—moving forward. Both the firms will work on the development of software for connected vehicles.
In December 2020, BlackBerry reportedly signed a multi-year deal with Amazon to create software for automakers to read vehicle sensor data, improving the performance of cloud-connected vehicles.
BB’s is already working on software to enhance big data and analytics. Whereas, Amazon is already positioned as one of the leading software developers in the world. The Berry-Amazon deal could take this market by storm.
Potentially, this deal could help BlackBerry to drive its financial position. The earnings of the company could sequentially improve over time with the effects of the Amazon deal showing results in the long-term.
The dark clouds that had covered BlackBerry Ltd. (BB) over a long period seem to clear out with the Amazon deal. BB has returned almost 12.22% since the beginning of the calendar year, while the rest of the Computer and Technology sector has returned an average of 1.29% on a year-to-date basis, as per Zacks. The sentiment around BB stock is high and it a strong buy at the moment.