Blackberry CEO on Why His Company Beat Earnings Estimates
Blackberry’s turnaround is in full swing, and the company’s CEO told Cheddar he’s expanding its software, cybersecurity, and automotive services to drive growth in 2018.
“Our software are now embedded into a lot of the chipset or optimizers of people like Qualcomm,” John Chen said in an interview Wednesday. “The strength comes in from that.”
Blackberry shares jumped to near three-year highs Wednesday, after the company reported earnings and revenue in the latest quarter above analyst estimates. While sales fell 25 percent from a year ago, the drop wasn’t as bad as expected. And profit came in at 3 cents a share, while analysts were expecting the company to break even.
The company was a pioneer in the smartphone market, but lost ground to rivals like the iPhone and Samsung products. But it’s shifted into new areas.
Chen said that, while Blackberry has been in the auto industry for about a decade, it began making a “major push” into the space four years ago.
“We focused on designing new components of cars like lane-changing, advanced driver assistance, telematics that talk to the internet,” he said.
The chief exec says 60 million cars on the road currently operate on Blackberry software.
A Senate bill unveiled on Wednesday looks to tackleonline safety for children by regulating Big Tech and social media platforms to deter users from content that can harm their mental health. Irene Ly, a policy counsel for the age-based ratings and review organization Common Sense Media, joined Cheddar News to break down the potential of the Kids Online Safety Act. "We can't be imposing such a big burden on parents to be doing it all on theirselves," Ly said. "I think you also have to keep in mind that parents often didn't grow up with social media, so they don't understand what it's like to be addicted to social media or really understand how they work."
While many still remain skeptical about the metaverse, big tech firms and even one big bank are ready to expand their virtual worlds. Facebook parent company has pivoted so hard it will now call its employees 'Metamates,' and even JPMorgan Chase has created its own digital lounge on one virtual platform. While the sector remains young, there seems to be significant investment opportunity, especially with companies like Nvidia. Adam Johnson, a portfolio strategist at Adviser Investments, joins Closing Bell to discuss which companies could win in this space, consumer appetite, and more.
Marc Blinder, Co-Founder and CEO of Aikon, joins Cheddar News' Closing Bell, where he discusses how his company is helping businesses use blockchain applications without needing to learn the intricacies of the new technology.
Senators Richard Blumenthal (D-Conn.) and Marsha Blackburn (R-Tenn.) have introduced a new bill to afford greater protection to minors on social media. The genesis of the Kids Online Safety Act came from a Facebook whistleblower case exposing the harm apps can have on the mental health of young girls.
