BlackBerry's Stock Surges On Amazon Partnership: What Investors Should Know

BlackBerry BB announced a new partnership with Amazon.com AMZN for its new intelligent vehicle data platform in a multi-year global agreement.

What To Know: The two companies will partner on BlackBerry’s intelligent vehicle data platform called IVY.

“BlackBerry IVY is a scalable, cloud-connected platform that will allow automakers to provide a consistent and secure way to read vehicle sensor data,” according to the press release.

Related Link: Recap: BlackBerry Q2 Earnings

Why It’s Important: BlackBerry IVY will support multiple vehicle systems and multi-cloud deployments across multiple vehicle models and brands. This announcement builds upon BlackBerry QNX capabilities.

The IVY platform runs inside a vehicle’s embedded systems. The platform can recognize driver behavior and hazardous conditions, provide insights to parents and share battery information with charging networks.

IVY makes it easier for automakers to collaborate with a wider pool of developers to accelerate the creation of new offerings. Automotive companies can remotely deploy and update the software from the platform’s cloud console.

“As automakers seek to race ahead in their digital transformations, BlackBerry IVY empowers them to build their brands and set the standard for connected vehicle services across the automotive industry,” said Amazon Web Services CEO Andy Jassy.

Benzinga’s Take: BlackBerry has transformed from a mobile company into a software and services company. The move has helped gross margins and also set BlackBerry up strong for potential future growth.

The partnership with Amazon strengthens the case for BlackBerry as one of the leaders in the connected auto markets. In August, the company pushed further into autonomous vehicles with a partnership to power Xpeng Inc XPEV vehicles.

The BlackBerry automotive operating system is used by over 175 million cars.

BB Price Action: Shares of BlackBerry are up 34% to $7.82 at publication time, hitting a new 52-week high.

A photo from the BlackBerry Network Operations Center in Waterloo, Canada.