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Today's Featured Story
BlackBerry Shifts Gears With Coretura DealAuthor: Jeffrey Neal Johnson. Posted: 9/25/2026. 
Key Points
- BlackBerry secured a contract worth more than $100 million with Coretura, a Daimler Truck and Volvo joint venture, validating its Alloy Kore software platform.
- The deal is expected to triple BlackBerry's revenue per vehicle, shifting the QNX division toward higher-margin, recurring software revenue ahead of second-quarter earnings on Sept. 24.
- BlackBerry shares have risen more than 120% year-to-date, with institutional hedge fund buying and options activity reflecting optimism about its automotive software turnaround.
- Special Report: Moderna Doubled in One Day. This Medical Stock Could Be Next
The automotive industry is shifting toward software-defined vehicles, which require complex, safety-certified computing foundations. For investors, this transition presents an opportunity to identify early leaders in mission-critical embedded software. BlackBerry Limited (NYSE: BB) has spent years pivoting its core business toward automotive operating systems, and that shift is beginning to pay off. BlackBerry recently secured a major contract with Coretura, a joint venture between Daimler Truck (OTCMKTS: DTRUY) and Volvo (OTCMKTS: VLVLY), ahead of its second-quarter earnings report. The deal validates Alloy Kore, BlackBerry's high-margin software platform, and demonstrates how a vehicle's core software can reshape the economics of major auto suppliers.
The shift away from fragmented legacy software toward pre-integrated operating systems is changing how capital is allocated across the supply chain, positioning key software providers to capture recurring revenue. The data offers a compelling look at how this technological pivot is unfolding. Landing a High-Margin Auto ContractBlackBerry's recent agreement with Coretura represents a key validation of its embedded Internet of Things division. Coretura, founded by commercial-vehicle giants Daimler Truck and Volvo, develops software for next-generation commercial trucks. To support that effort, Coretura selected Alloy Kore, a foundational software layer co-developed by BlackBerry's QNX division and Vector. The contract is valued at more than $100 million, making it one of the largest design wins in the history of the QNX unit. Modern commercial vehicles require hundreds of millions of lines of code to operate safely. Historically, manufacturers relied on fragmented development models, leading to high integration costs, delayed launch cycles and inflated research budgets. Alloy Kore addresses these inefficiencies by pairing a safety-certified operating system with core vehicle services that are already built in. With this standardized framework, automakers can direct engineering capital toward the features that differentiate their brands instead of rebuilding the basics. Coretura's decision to commit to this architecture before its general market release indicates clear industry demand for production-ready, safety-certified computing foundations. Accelerating BlackBerry's Unit EconomicsFrom a financial perspective, the Coretura integration could fundamentally improve the unit economics of the QNX platform. Core software layers command greater pricing power than isolated infotainment or dashboard systems. Initial estimates indicate that the Alloy Kore platform triples BlackBerry's revenue per vehicle, shifting the division's margin profile toward high-value recurring revenue. The numbers suggest that the market is pricing in a structural turnaround. BlackBerry currently generates about $549 million in annual sales and trades at a price-to-sales multiple near 8.6. Its trailing price-to-earnings ratio is approximately 89, a valuation that requires consistent execution to justify. The anticipated expansion in recurring software margins is projected to reduce the forward price-to-earnings ratio to around 64, supported by a forecasted 46% earnings growth rate. Profitability ratios add context to this growth trajectory. BlackBerry maintains a net margin of around 10.31% and a return on equity near 11.66%. A low debt-to-equity ratio of 0.26 and a current ratio of 2.20 provide the liquidity needed to fund ongoing research and development without heavily leveraging the balance sheet. Across the broader automotive supply chain, capital allocation differs by subsector. BlackBerry's competitors, such as Aptiv PLC (NYSE: APTV), focus heavily on hardware and software integration, while Mobileye Global Inc. (NASDAQ: MBLY) targets advanced driver-assistance vision processing. BlackBerry operates with a pure-play software model, avoiding the capital-intensive manufacturing requirements of its peers while building a scalable recurring-revenue base. Smart Money Parks Capital in BlackBerryThe timing of the Coretura announcement gives management quantifiable leverage heading into the second-quarter earnings report on Sept. 24. BlackBerry shares have rallied more than 120% since the beginning of the year and are currently trading near $8.40. This price action suggests the broader market is actively repricing the stock from a legacy mobile brand into a tier-one automotive software provider. Institutional ownership trends offer additional insight into market sentiment. Recent filings indicate that quantitative hedge funds have accumulated shares, signaling confidence in the company's turnaround. These institutional inflows may help stabilize the stock amid corporate insider selling, which has occurred as executives have sold shares during the year-to-date rally. Short interest remains at moderate levels, suggesting an absence of extreme bearish positioning that could artificially suppress the stock. The options market reflects speculative bets tied to positive forward guidance, with call options dominating recent put volume. The nine-figure addition to the QNX backlog provides the visibility institutional investors need to model long-term cash flows, making it easier for them to commit capital. Mapping the Route for Software MarginsBlackBerry's shift toward becoming a high-assurance vehicle software provider carries real execution risks. Its premium valuation requires consistent margin expansion and additional design wins to maintain current price levels. Any delay in deployment schedules or broader pressures affecting commercial vehicle production could affect BlackBerry's short-term revenue realization. Despite these risks, the Coretura partnership demonstrates that BlackBerry's QNX architecture commands tangible engineering value. Transitioning from fragmented operating systems to a pre-integrated, mission-critical foundation creates a recurring-revenue moat that may be difficult for competitors to replicate. The shift in unit economics positions the embedded software division to capture a larger share of the value created by the software-defined vehicle movement. Investors monitoring the automotive technology sector may want to add BlackBerry to their watchlists as the company demonstrates its ability to secure tier-one commercial validation and expand its software margins. . |
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