BlackBerry (NYSE:BB), a security software and vehicle-embedded systems provider, closed at $8.72, up 4.06%. The stock rose after premarket Q2 results beat estimates and management lifted full-year fiscal 2027 guidance. Investors are next watching automotive software demand and QNX growth. Trading volume reached 43.2M shares, coming in about 134% above its three-month average of 18.4M shares. BlackBerry IPO'd in 1999 and has grown 354% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) closed at 7,704, down 0.03%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) closed at 26,939, up 0.01%. In cybersecurity and embedded software for automotive, enterprise, and government customers, sector rivals Palo Alto Networks (NASDAQ:PANW) closed at $389.92, down 0.86%, and CrowdStrike Holdings (NASDAQ:CRWD) closed at $259.67, down 1.07%, after recent AI-security and guidance updates kept the group in focus.
What this means for investors
BlackBerry reported Q2 earnings that soared past analysts' expectations on Thursday, with sales and adjusted EBITDA rising 26% and 81%, respectively. The company's "crown jewel," QNX unit, delivered 27% sales growth and continues to dominate the automotive software niche.
However, it will likely be QNX's expansion beyond this automotive focus that could prove to be the deal-breaker for BB stock's investment thesis over the long haul, as the safety-first operating system moves into areas such as autonomous vehicles, robotics, robotic surgical systems, and physical AI more broadly.
As a leader in this corner of the "Internet of Things" world, BlackBerry is a stock that I'll keep a close eye on, but at 46 times forward earnings, I'm not rushing out to buy more shares just yet.
Josh Kohn-Lindquist has positions in BlackBerry and CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends BlackBerry and Palo Alto Networks. The Motley Fool has a disclosure policy.