Story
BlackBerry Stock Surges on Major Automotive Software Deal Ahead of Earnings
BlackBerry (BB) shares surged 8.2% in pre-open trading on Tuesday after the company announced a significant design win for its automotive software division, QNX. The rally was further supported by positive media and analyst commentary just two days before the company is scheduled to report quarterly earnings.
Key Design Win Drives Rally
The primary catalyst for the stock's move was an announcement that Coretura, a software-defined vehicle platform company founded by Daimler Truck and Volvo Group, has selected BlackBerry's technology. Coretura will use the QNX software and partner Vector's Alloy Kore as the foundational software for its next-generation commercial vehicle platform.
According to the announcement, this represents the first major design win for Alloy Kore since its introduction. The deal serves as a key validation of the platform's commercial viability and signals an expansion of QNX's footprint beyond passenger cars into the heavy commercial vehicle market.
Analyst and Media Commentary Add Fuel
The positive momentum was amplified by several external factors. CNBC's Jim Cramer issued a buy call, highlighting BlackBerry's strategic pivot into automotive and robotics software. The move also drew attention from Wall Street analysts ahead of the company's Q2 fiscal 2027 earnings report, scheduled for September 24.
Ad- RBC Capital: Analyst Paul Treiber reiterated a Sector Perform rating and a $9.00 price target, noting that revenue and adjusted EBITDA could surpass consensus estimates, citing the company's history of conservative guidance.
- Stifel Canada: Analyst Suthan Sukumar, who holds a Buy rating and a $12 price target, argued that QNX would see continued momentum in securing design wins.
Market Context and Outlook
The surge appeared to be entirely company-specific, with the broader market offering little support. The S&P 500 was up just 0.1% and the Nasdaq was flat in pre-market trading. Automotive software peers like Mobileye and Aptiv were largely unmoved, indicating the absence of a sector-wide rotation.
With second-quarter results imminent, investors appear to be positioning for a potential earnings-driven rally. Despite the sharp move, the stock remains well below its 52-week high of $13.59, according to the source.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.