Why BlackBerry Stock Jumped Again Today

Blackberry

(The Motley Fool)

Shares of BlackBerry (NYSE:BB) are climbing once again today after gaining 25% yesterday. Yesterday’s jump and today’s subsequent rise stem from the company’s new agreement to work with Amazon’s cloud computing company, Amazon Web Services (AWS), on an intelligent vehicle data platform.

The tech stock rose by as much as 20.1% this morning and is up 7.5% as of 1:15 p.m. EST.

BlackBerry said yesterday that its new intelligent vehicle data platform, IVY, will help automakers understand and utilize vehicle sensor data.

BlackBerry’s CEO John Chen said in the company’s press release, “This software platform promises to bring an era of invention to the in-vehicle experience and help create new applications, services, and opportunities without compromising safety, security, or customer privacy.”

BlackBerry will use some of AWS’ cloud computing services, including Internet of Things and machine-learning systems, for some of the platform’s features.

AWS CEO Andy Jassy said in the release that the joint effort will “provide automakers with the insights, capabilities, agility, and speed they need to thrive in an increasingly connected world.”

The global multi-year agreement between the two companies boosted investor sentiment in BlackBerry over the past two days. The company didn’t specify in the announcement how the joint effort will improve BlackBerry’s top or bottom lines, so investors will have to pay close attention to BlackBerry’s quarterly results to see if the agreement brings any significant financial benefits.

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