Two hundred fifty million cars run on software from a company most people think is dead.
That is the number that put BlackBerry, ticker BB, on my watchlist this week. Not the phone everybody remembers.
The operating system, called QNX, sitting inside a quarter of a billion vehicles right now, running the dashboards and the driver-assist systems that have to work flawlessly every time somebody turns a key.
You have probably ridden inside this company’s software a hundred times without knowing the name was attached to it.
That number is the whole story, because of where the car industry is headed.
The market is obsessed with what it calls physical AI, machines that act in the real world instead of just answering questions on a screen. Self-driving cars are the front edge of it, robots in warehouses and factories are right behind.
Every one of those machines needs an operating system underneath it that does not glitch while a two-ton object is making a decision at highway speed, and BlackBerry already owns that job in 250 million cars.
The company is now aiming the same software at robotics and industrial machines, and it flat-out calls its automotive business the proving ground for physical AI.
That is not the company Wall Street has in its head, and yesterday the distance between the two snapped shut in a hurry. BB reported earnings and jumped almost 20% in one session to $10.34, on roughly 70 million shares, more than double a normal day.
Revenue grew 26%. Profit beat. The company turned its first cash-positive fiscal first quarter in nine years and raised its guidance for the year.
A stock people left for dead just printed a growth quarter and broke to a new high.
The chart was already telling me something before the number hit.
BB spent six months flatlined down near $3 while nobody paid attention, then tripled off that floor since April.
Through that whole run the daily exponential moving averages stacked up clean, the 8 over the 21 over the 34, price riding on top of all of them, which means everybody who bought on the way up is in the money, and nobody is stuck overhead waiting to sell into strength. The weekly is leaning the same way.
And right as it broke to this new high, it coiled into a squeeze, the energy winding up tighter with the move already pointed up.
A stock that already tripled is extended, and extended names snap back hard and fast when they shake people out, so this is not a chart anybody should be chasing blind.
The valuation is steep for a turnaround this early. That is the cost of looking at a name that is already running instead of one nobody wants.
However, I don’t look at these stocks as investments; I’m in them purely for a trade.
What I want is a company the market still thinks is roadkill, sitting dead center in the hottest theme in tech, breaking to a new high on a real quarter, with the chart wound up behind it.
BB checks every one of those boxes right now, which is exactly why it is on the list.
Your Action Plan
I love trading stocks that crush earnings for a potential continuation move higher.
And if the market wasn’t so whippy, I would be all over this one.
If you would like to know what else I like, check out my Fast Cash system.