Is the Blackberry (BB) share price about to explode?
The Blackberry (NYSE: BB) share price is up by 30% in five days. This tech stock has been the fourth-most traded stock on UK broker platform Hargreaves Lansdown over the last week. Blackberrys share price has risen by 170% over the last 12 months as the firms turnaround has gathered pace. The former smartphone maker has pivoted into cybersecurity and announced a partnership with Amazon last year. Brokers expect a return to profit next year. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... This aint no start-up  Blackberry isnt a start-up with big hopes and few customers. This business generated revenue of nearly $900m last year and is expected to return to profitability next year. Key products include the groups Spark suite of cybersecurity products, and QNX. This is an operating system that installed in more than 175m vehicles worldwide and is also used in other automation environments. Analysts are bullish on the outlook for the business. The latest consensus forecasts show Blackberry generating a $60m net profit next year. That figure is expected to triple to $182m the following year. I think the company could be on the verge of a winning streak. Facing tough competition  Of course, Blackberry isnt a sure thing. A growing number of companies are applying artificial intelligence techniques to cybersecurity. One interesting example is Darktrace, which recently listed on the London market. Another risk is that in my experience, its quite rare for companies to reinvent themselves successfully. More often, they tend to fall short and get left behind by newer businesses with less baggage. So far, I have to admit that Im impressed with Blackberrys progress. But this business is still losing money and its cash balance has been falling. Blackberry share price: what Id do  If Blackberry becomes the next big meme stock, then I think the share price could rise quickly and unpredictably. I cant predict how this might go. What I can say is that the Blackberry share price already looks fully priced to me, based on investment fundamentals. Putting this into numbers, BB stock currently trades on 200 times 2022/23 forecast earnings. This multiple falls to 49 times earnings in 2023/24. If Blackberrys earnings meet broker forecasts and continue to grow strongly in 2024/25, then I think the shares could start to look quite affordable. The problem for me is that situation might be three or four years in the future. Given Blackberrys mixed track record, I dont feel comfortable paying for so much growth in advance. For me, the stock is already high enough. The only reason I can see to buy Blackberry today is that the stock could surge on a wave of retail trading. Thats too speculative for me, so I wont be buying.