It’s getting more difficult by the day to ignore signs that John Chen’s turnaround plan is firing on all cylinders for the once embattled smartphone maker, but one analyst says investors are overlooking an important and promising tidbit; their software business.
BlackBerry Ltd. is riding a recent wave of good news. Chen met with the heads of Xiomi Corp. and Lenovo Group Ltd., two of the largest mobile players in China – the biggest smartphone market in the world – to discuss potential partnerships Monday. Shares closed up 5.78 percent. Last Friday, the Ontario Teachers’ Pension Fund bought almost 7.8 million shares. A 1.6 percent stake valued at $84.5 million and an important vote of confidence that pleased investors.
“I’m stunned at what I’m seeing. Everybody is still focused on the hardware,” said Peter Misek, a venture partner at DN Capital in an interview with BNN.
He says Chen’s goal to double software revenue by the end of fiscal 2015, from $250 million to $500 million, is already building momentum.