Is BlackBerry Limited (BB) A Good Stock To Buy Now?

Is BB a good stock to buy? We came across a bullish thesis on BlackBerry Limited on Beyond the Noise’s Substack by Cristobal Botanch. In this article, we will summarize the bulls’ thesis on BB. BlackBerry Limited's share was trading at $5.09 as of April 24th. BB’s trailing and forward P/E were 56.56 and 29.67 respectively according to Yahoo Finance.

BlackBerry Limited provides intelligent software and services to enterprises and governments worldwide. BB is emerging as a compelling turnaround story following its Q4 FY2026 results, which reinforced sustained revenue and profitability momentum after years of transition.

The company reported $156 million in revenue, exceeding guidance, alongside $36.1 million in adjusted EBITDA with a 23% margin, marking its eighth consecutive quarter of improved GAAP profitability. At the core of BlackBerry’s investment case is its QNX platform, a mission-critical real-time operating system embedded in over 275 million vehicles globally.

QNX operates on a royalty-based model tied to production, supported by a growing $950 million order backlog, delivering 20% growth and 27% EBITDA margins, positioning it as a high-quality “Rule of 40” business. Despite this, the market continues to undervalue BlackBerry as a legacy mobile company, creating a significant perception-driven discount. The Secure Communications segment, long viewed as a drag, is now stabilizing with stronger demand from government clients amid rising defense spending.

Additional upside stems from QNX’s expansion into robotics, healthcare, and industrial applications, alongside Alloy Kore, a pre-integrated automotive software platform expected to significantly increase revenue per vehicle. Although not yet reflected in estimates, ongoing discussions with major automakers signal meaningful potential.

With shares down nearly 50% despite improving fundamentals, BlackBerry trades at depressed multiples relative to historical averages. As free cash flow generation improves and new contracts materialize, the company appears well-positioned for multiple expansion, offering substantial upside driven by both operational execution and a shift in market perception.

Previously, we covered a bullish thesis on BlackBerry Limited (BB) by NYCandrun in February 2025, which highlighted its mispricing despite strong QNX growth, IVY platform potential, and a stabilizing cybersecurity segment. BB’s stock price has depreciated by approximately 8.78% since our coverage. Cristobal Botanch shares a similar view but emphasizes on the confirmed turnaround, improving profitability, and incremental upside from Alloy Kore.

BlackBerry Limited is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held BB at the end of the fourth quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of BB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BB and that has 10,000% upside potential, check out our report about this cheapest AI stock.