BlackBerry Is an Emergent Software Vendor on the Path to Profitability, Despite Lacking a Moat

We believe BlackBerry presents a mixed bag for investors, but we like management’s renewed focus on investing in its stronger automotive software business. We like the firm’s automotive software portfolio, but see the larger enterprise security business as an underperformer that weighs on results. BlackBerry sells software into enterprise cybersecurity applications and embedded applications like cars. Its products in enterprise security focus on secure communications. In the automotive market, BlackBerry’s QNX software underpins automotive chips, safety systems, and cabin features.