Long term, I am very positive on IoT and cybersecurity - which potentially makes BB a great company. I thank you for bringing it to our attention. I am keeping an eye on it.
However, the market conditions, such as they are, and going forward, are focused on near term earnings and only much further down care about earnings growth. It almost doesn't matter what a company does, from genomics, to super cool HW, various software platforms, to semiconductors, to cybersecurity, to whatever - when I look at them, if they don't have good near term earnings, they are trending down. This in turn limits their access to capital and to talent.
I think this is going to be a value stocks year. It will certainly be a stock pickers' year as opposed to broad bets. The thing is that at some point in time almost every growth stock becomes a value stock. I can already see that in some and there are plenty of growth stocks that are not too far from becoming a value play. Even some of Cathie Wood stocks are now closer to value than to growth.
So I am not telling you that BB is a bad long term bet. I am saying that it carries a lot of risk and this is becoming a risk off market. They need to execute perfectly and get lucky. |
