No-Moat BlackBerry’s Automotive Software Is Strong but Cybersecurity Business Is Underperforming

We think BlackBerry has positioned itself in rapidly growing markets that benefit from secular trends toward security and connectivity, but we think it has a long way to go to earn a durable competitive advantage. 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 endpoint security. In the automotive market, BlackBerry’s QNX software underpins automotive chips, safety systems, and cabin features.