BlackBerry Surges Most Since 2015 on Amazon Collaboration

BlackBerry Ltd. surged the most since 2015 after the company signed a multiyear agreement with Amazon Web Services to develop and market its “Intelligent Vehicle Data Platform,” called IVY.

IVY is a cloud-connected software platform that aims to let automakers read vehicle sensor data, improving the performance of cloud-connected vehicles, according to a joint statement. BlackBerry, once known for a popular array of phones, now focuses on its software and security offerings.

Shares climbed as much as 65% Tuesday before paring some gains to close up 19%. BlackBerry trading volume was more than 70 times the daily average.

BlackBerry Surges Most Since 2015 on Amazon Collaboration

Sales of BlackBerry’s QNX, its software platform for cars, could get a boost from IVY, according to Bloomberg Intelligence analyst John Butler. Amazon Web Services’ strong reputation may also “enhance the appeal” of IVY when it becomes available, Butler said.

Amazon Web Services is the largest provider of rented computing power and software services and has reshaped how companies of all sizes buy technology. The Amazon.com Inc. unit has made an aggressive push in recent years to get automakers to use its cloud-computing tools as the digital plumbing behind their connected cars, or for their manufacturing efforts. Customers include Volkswagen AG and Toyota Motor Corp.

©2020 Bloomberg L.P.

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