- NYSE: BB is on course to top the $10/share level amid its patent sale to Huawei.
- BlackBerry Ltd. settlement with Facebook also provides room to the upside.
- The Canadian firm’s lucrative accord with Amazon is also helping out.
Former President Barack Obama was famous for his BlackBerry – and stocks are rising as his Vice-President Joe Biden is set to enter the White House. Canada’s BlackBerry Ltd (NYSE: BB) is no longer focused on hand-held devices but rather on enterprise software and the Internet of Things (IoT). However, the firm is enjoying a blast that sends its to price seen in the past – shares are hitting the highest since 2018.
Three deals with larger tech firms are boosting the stock.
1) Huawei: BlackBerry sold some 30 mobile phone patents to the Chinese telecom giant. The prominent firm sells cellphones and is also a leader in 5G technology. Getting rid of its legacy business allows BlackBerry to focus on the future.
2) Facebook: Huawei is not the only controversial firm BlackBerry is dealing with. Also with Mark Zuckerberg’s social behemoth, BB is letting go of its past. The two firms have settled an ongoing dispute related to patent infringements. The burden of having BB’s financial might was a weight on BlackBerry’s shoulders.
3) Amazon: Moving from one giant to another, the Canadian firm’s future may lie with the retail behemoth. The two companies are collaborating around the IVY car platform, combining software abilities.
BB Stock Forecast
Investors are cheering these developments and pushing stocks higher. After closing at $9.84, Tuesday’s premarket trading is pointing to another increase of over 6% to above $10. That would be the highest since late 2018.
The peak seen around that time was around $14, which is a stretch target for bulls. Support awaits at the previous peak of $8, followed by $7.
Credit: FX Street