Market Overview

BlackBerry Teams Up With Delphi For QNX Operating System

Share:
BlackBerry Teams Up With Delphi For QNX Operating System

Wednesday was a big news day in the self-driving automobile technology space. A potential Tesla Inc (NASDAQ: TSLA) partnership with chipmaker Advanced Micro Devices, Inc. (NASDAQ: AMD) captured most of the headlines.

However, BlackBerry Ltd (NASDAQ: BBRY) also announced its own under-the-radar driverless technology software deal with Delphi Automotive PLC (NYSE: DLPH).

While most of the larger auto makers are developing their own autonomous systems, Delphi is working on developing a third-party system it can begin selling to smaller automakers as soon as 2019.

Delphi says BlackBerry’s QNX operating system has just the kind of security standards that the company is looking to include in its driverless system.

Security will be a major concern during the roll-out of driverless automobile software. Cybercriminals could potentially do a lot of damage if they were able to gain control of cars on the highway.

BlackBerry investors are hoping driverless automobile security will play a major role in the company’s rebirth as a digital security company, as BlackBerry continues to distance itself from its legacy smartphone business.

Back in August, Goldman Sachs analyst Gabriela Borges said the market is putting way too much stock in BlackBerry’s auto business. At the time, Goldman estimated BlackBerry’s auto business was valued at a bloated 13 to 17 times revenue, and the firm saw very little near-term growth potential. Borges said BlackBerry investors can expect a meaningful tailwind from the auto business starting in 2019.

BlackBerry shares initially jumped 7.7 percent on Wednesday following reports of the Delphi deal. The stock has cooled in early Thursday trading, down 1.8 percent on the day.

Related Link: Analysis: Auto Business Prospects Not Enough To Breathe Life Back Into BlackBerry

Image credit: Ben Stassen, Flickr

Posted-In: autonomous vehicles driverless cars QNX operating systemAnalyst Color News Contracts Tech Best of Benzinga

 

Related Articles (AMD + BB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DNKNGuggenheimMaintains86.0
KSURaymond JamesReiterates188.0
DLTRKeyBancDowngrades
MSCitigroupDowngrades
WTRB of A SecuritiesDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com