Will the Revamp of the IoT Unit to QNX Brand Boost BlackBerry Stock?

BlackBerry Limited BB recently made a strategic decision to relaunch the QNX brand, solidifying its foothold within the automotive and embedded systems industries. The decision to reintroduce the QNX brand was driven by valuable feedback from customers, partners, employees and stakeholders. Formerly known as "BlackBerry IoT," the rebranding highlights BB’s commitment to fuel the development of next-generation software-defined vehicles (SDVs) and mission-critical applications. Investors responded positively to the move, and the company’s stock went up 1.06%, with the session closing at $3.82 on Jan. 02.The revitalized QNX brand will debut at CES 2025, which will take place from Jan. 7–10 in Las Vegas. Management noted that the rebranding strategy not only honors the legacy of QNX but also unlocks new streams for growth, enabling the IoT division to meet evolving market demands with precision-engineered solutions.Acquired by BlackBerry in 2010, QNX has augmented its portfolio to automotive software, IoT systems and more. Currently, QNX is said to power more than 255 million vehicles worldwide. Also, it forms an integral part of industries ranging from healthcare to robotics, transportation and heavy machinery. In fiscal 2024, QNX launched its largest product update in over a decade with QNX Software Development Platform (SDP) 8.0, which provides a scalable foundation for automotive and IoT systems. Other innovations include QNX Sound, an audio platform for SDVs and QNX Everywhere, an initiative promoting open development environments for QNX tools.Going ahead, management plans to update various platforms and products, including the myQNX development environment, to align with the division's new brand identity. As part of its relaunch, QNX designed a new logo, website and visual identity inspired by its new tagline - “It all starts here.” The initiative reinforces QNX’s role as the foundational software for some of the world’s most critical systems. The division has modernized its colors, fonts, images and icons to incorporate the brand's innovative, performance-driven and future-focused values.Backed by QNX, the company expects the IoT business to register double-digit revenue growth, contributing significantly to BlackBerry’s financial recovery. The IoT division is likely to generate $225-$235 million in revenues for fiscal 2025 compared with $215 million in the previous year. By fiscal 2027, revenues from this segment are anticipated in the range of $295-$305 million.Further, it expects the IoT Core Serviceable Addressable Market to witness a compound annual growth rate (CAGR) of 8-12% from 2024-2026, reaching $2.1 billion by 2026. In the last reported quarter, revenues from the IoT business totaled $62 million, which was up 13% year over year and exceeded the company’s guidance of $56-$60 million. This uptick was attributed to strong revenues from royalties and development seat licenses. The increasing adoption of the SDP 8.0 in the Auto and General Embedded market bodes well. BB highlighted that more than 10 leading silicon vendors have already committed to supporting SDP 8.0.BB’s Zacks Rank & Stock Price PerformanceBB currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 17.8% in the past year compared with the sub-industry's growth of 18.7%.Image Source: Zacks Investment ResearchOther Key PicksKeysight Technologies, Inc. KEYS carries a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks hereIn the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.Ubiquiti Inc. UI sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis Report BlackBerry Limited (BB): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks