I’m a long-term investor and not a gambler. This “meme stock to buy in July” is a stock I’d hold for at least the next five years.
The most famous meme stocks are GameStop and AMC. A cursory glance at their share price history over the last six months tells me that these two shares are best used as speculative bets rather than as serious investments, due to stock prices that are wildly detached from their fundamentals. GameStop’s share price has varied from between four dollars to $350 in the past year and is $167 today. Meanwhile AMC was under two dollars in January, hit highs of over $60 in June, and is currently at $36.
Could these stocks go higher? My fellow Fools have covered this in detail, but it is impossible to know when to time your move. However, I have identified one technology meme stock to buy in July that I think has great long-term potential. If it ‘rockets to the moon,’ that is an added bonus.
A future technology powerhouse?
I believe that Blackberry (NYSE: BB) is a meme stock with great long-term potential, though not on fundamentals alone. Its latest earnings report a fortnight ago paints a varied picture; the company only brought in $174m compared to $206m in the same quarter last year. On the other hand, losses have reduced from $636m last year to just $62m in last quarter’s earnings. This demonstrates that the company’s strategy may soon bring a return to profitability.
Business software solutions
It is possible some readers still think of Blackberry as just a meme stock, one of the losers in the mobile phone war. This is no longer an accurate assessment. The company has transformed from hardware sales to business software solutions. 60% of its revenue comes from cybersecurity, a global industry worth $165bn last year and projected to rise 10% year on year.
A further quarter of revenue comes from its Internet of Things (IoT) department, which specializes in digitising the physical world by providing machine to machine connectivity. As the world becomes more connected, revenue in these two departments could skyrocket; independent research puts the value of IoT at $11trn by 2025.
Blackberry is also working with Amazon to deliver its QNX OS software, used worldwide in trains, ventilators, factories, and medical robots. This software is also utilised in advanced driver systems in 175m cars on the roads today. This represents an increase of almost 400% in the past five years, and could increase further as society moves towards electric only driverless vehicles. Furthermore, its highly anticipated automotive analytics Ivy platform is launching next year. This will further cement the company’s partnership with almost every major car manufacturer, including Ford, GM, Toyota, and Volkswagen.
However, the share price has been rocky over the past 12 months. It spiked to over $25 in late January because of the Reddit hype, and is at $11.79 today, with some analysts expecting it to fall further. As an original meme stock, there is always a chance it could spike again, but this price makes it an attractive meme stock to buy in July for my portfolio.
Charles Archer owns shares of BlackBerry. The Motley Fool UK has recommended BlackBerry. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.