Blackberry has been given the raspberry by investors, but stock picker extraordinaire, Jim Simons, founder of the Medallion Fund, is buying shares of Blackberry on the company’s leadership role in the creation of the internet of things, as reported by Motley Fool.
Simon’s Medallion fund has returned an average of 35% annually since it was founded in 1982, so it is safe to say Simons knows a good stock when he sees one. Blackberry, however, has been a laggard behind Apple and other tech stars, but it may likely have its day in the sun once again. Regarding its day-to-day issues, the new CEO John Chen has improved the financial health of the company. The main focus, however, is on the Internet of Things or IoT.
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The Internet of Things is the concept that many of the objects we consider as inanimate now may be connected to the internet in a few years. Just as we have a concept of a smartphone, we will someday soon have a smart diswasher, a smart heater, a smart car garage etc.. Blackberry has been at the forefront of the conversation about IoT with Project Ion, which will support an IoT ecosystem, support QNX software and pursue partnerships.
If Cisco predicts that by 2020, IoT will add $19 billion to the world GDP, the market for IoT products will grow threefold and more than 50 billion devices will be connected to the internet, versus 50 billion today. If Cisco is correct, and Blackberry will be one of the IoT pioneers, than no wonder investors like Simons are interested.
