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Why BlackBerry Stock Is Skyrocketing Today

By Chris Neiger - Dec 1, 2020 at 1:33PM

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BlackBerry and AWS announced an agreement to develop an intelligent vehicle data platform.

What happened

Shares of BlackBerry ( BB -0.55% ) shot up today after the company announced that it's joining forces with Amazon.com's cloud computing branch, Amazon Web Services (AWS), to develop and market its intelligent vehicle data platform, called IVY.

The tech stock spiked as much as 65.1% and shares were up by 45.5% as of 1:14 p.m. EST.

So what

BlackBerry said that its IVY platform will allow automakers "to provide a consistent and secure way to read vehicle sensor data" and use it to create new vehicle services or provide a better experience for drivers. For example, BlackBerry said IVY could analyze hazardous weather conditions using a vehicle's sensors and recommend that a driver enable their traction control or lane-keeping assist features. 

Three line graphs pointing up.

Image source: Getty Images.

AWS CEO Andy Jassy said in a statement that "AWS and BlackBerry are making it possible for any automaker to continuously reinvent the customer experience and transform vehicles from fixed pieces of technology into systems that can grow and adapt with a user's needs and preferences."

The joint effort between the two companies is a multi-year, global agreement that will provide automakers with vehicle insights and capabilities through the IVY platform. BlackBerry said it will utilize AWS' Internet of Things and machine-learning systems for some of IVY's capabilities.

Now what 

Investors were clearly happy with today's agreement between the two companies and sent BlackBerry's stock soaring. BlackBerry's share price has been in negative territory most of this year, but with today's gains, its stock is up 38% year to date.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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