I tend to solidify whether financial news is truly a big deal by one thing: my husband. If he starts asking about something in the stock market, I know it’s a really big deal. That’s what happened when the historic rise of GameStop (NYSE:GME) flooded the airwaves.
While GameStop is no longer heading up headlines, I still think there is something to be learned from the meteoric rise and enormous fall of the company. In fact, it may not be the last time we see such a short squeeze from the likes of GameStop stock. In fact, this could be the year that we see many companies have such movement as the pandemic (hopefully) comes to a conclusion.
When I talk about bets, I want to be clear: I don’t mean you should start looking for the next short squeeze. That is a very dangerous game. In fact, the reason it’s called a short squeeze is because short sellers who bet the stock would lose money were forced to buy the stock just so they wouldn’t see their losses increase even further — not the best investment strategy, especially when the stock collapsed almost immediately after.
So when you place your bets on a stock, it should be as a long-term hold. It’s not really betting at all, frankly. You’re investing in a company’s fundamentals, believing it has the strength to go the distance. That’s why it’s a great time to get behind a company like BlackBerry Ltd. (TSX:BB)(NYSE:BB).
But here’s the great news. There could be yet another BlackBerry frenzy like we saw at the beginning of the year. Even one similar to GameStop stock. Why? Let’s dive in.
You might not consider BlackBerry stock as a solid post-COVID recovery play. However, the company’s recent movement comes largely from the announcement by the United States President Joe Biden that electric vehicles (EV) – and other green energy initiatives – will see massive investment worth billions of dollars.
Even better, President Biden stated he would be changing 650,000 federal vehicles into EVs. This announcement is just further fuel to the fire that is the EV industry — an industry that will see massive influence in BlackBerry stock. Several motor companies have announced plans to have a full-fleet of EVs and plug-in hybrids by 2030. The entire industry could be worth $1 trillion by that point, according to estimates!
And what company will many of these companies use for their in-car software? BlackBerry. The company even partnered with Amazon Web Services to improve its IVY platform, and make cloud-based data safer and more user friendly. With Apple and Google also potentially entering the car industry, BlackBerry stock could rise as its QNX software remains at the forefront of autonomous vehicle use.
So what does this have to do with a COVID recovery? Right now, motor companies remain stalled on the production line. The red tape that has to be crossed to see cars safely out the door is stringent. But as these walls slowly come down, companies should be able to ramp up production, which means a higher demand for BlackBerry’s software.
So really, even though there was a recent boost in share price, the company’s future growth prospects leave plenty of room to grow. BlackBerry stock could shoot up as it partners with even more household-name organizations. Investors may even see the triple-digit prices we saw two decades ago, leaving today’s share price of about $13 as of writing a steal of a deal.
Speaking of upside, here is another list of HIGH GROWTH options to consider before buying a risky stock in bulk.
Should you invest $1,000 in Air Canada right now?
Before you consider Air Canada, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now… and Air Canada wasn’t one of them.
The online investing service they’ve run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and GameStop. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.
The post Next GameStop (NYSE:GME)? Why 2021 Is the Year for BlackBerry (TSX:BB) appeared first on The Motley Fool Canada.
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