BlackBerry vs. Score Media: Which Stock Is the Better Buy?

BlackBerry Ltd. (TSX:BB)(NYSE:BB) and Score Media Ltd. (TSX:SCR)(NASDAQ:SCR) are exciting stocks to consider today.

| More on:

Technology stocks encountered turbulence in late February and early March. Rising bond yields triggered volatility for North American tech stocks. These equities had been riding a red-hot wave since the March 2020 market pullback. Today, I want to look at two tech stocks on the TSX that have been very volatile in early 2021. BlackBerry (TSX:BB)(NYSE:BB) and Score Media (TSX:SCR)(NASDAQ:SCR) are two exciting stocks that are worth your attention. Which is the better buy? Let’s dive in.

Can BlackBerry catch up to its biggest competition?

BlackBerry stock started to gain serious momentum in December 2020. Back in January, I’d suggested that the stock could make Canadians rich this year. I should have kept that target within the very week of publication. BlackBerry was swept up in the GameStop craze, spurring it to a 52-week high of $36.00. However, this momentum burnt out and it fell back below the $20 mark before January came to an end.

Shares of BlackBerry have still climbed 75% in 2021 as of close on March 12. Investors can expect to see its final batch of fiscal 2021 results at the end of this month. The company has a promising footprint in high-growth sectors like cybersecurity and automotive software development. It announced a collaboration with Amazon in the automotive software space in late 2020.

These prospects are exciting, but BlackBerry still lags many of the heavy hitters in cybersecurity and automotive software development. Investors chasing growth are hungry for bigger strides for the Waterloo-based company. Still, this excitement has fueled a 210% rise in the year-over-year period. Canadians should watch its next earnings release closely.

Why Score Media is ready to cash in on sports betting in Canada

GameStop has gained a second wind in early March. However, I’d suggested that investors should direct their attention to a different kind of gaming stock. No, I’m not talking about Fortnite or Red Dead Redemption 2. Score Media is poised to gain as Canada prepares to legalize single-game sports betting. It hopes to outpunch powers like DraftKings and others in the domestic sports gambling market.

In late 2020, the Trudeau government opened the door for legal single-game sports betting in Canada. Like with cannabis, federal legalization does not mean that the industry will be free and clear. The buck will back to the provinces, who may differ on how they choose to regulate this lucrative space. Still, it is an exciting time for Score Media.

Shares of Score Media have climbed over 100% in 2021 on the back of this anticipation. The stock is up over 900% year over year. As exciting as this is for Score Media, investors should be cautious. Hype can transition quickly into “prove it” mode after legalization, as we saw with the cannabis space in 2018. Score Media will need to punch above its weight class in the sports betting space.

Which stock should you buy right now?

I love the potential of the legal sports betting space in the near term. BlackBerry is a promising long-term play, but it is still a long way from meeting expectations. Score Media stock has dripped sharply from its February highs. This may be the perfect time to buy the dip ahead of legalization in Canada.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. 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, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and GameStop. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

More on Tech Stocks

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Tech Stocks

Best Tech Stocks for Canadian Investors in the New Year

Three tech stocks are the best options for Canadians investing in the high-growth sector.

Read more »

doctor uses telehealth
Tech Stocks

What to Know About Canadian Small-Cap Stocks for 2025

Small cap stocks are a great way to experience outsized gains. Here is what you need to know about small…

Read more »

A worker drinks out of a mug in an office.
Tech Stocks

A Top-Performing U.S. Stock That Canadian Investors Really Should Own

Canadian investors should buy and hold this top performing U.S. stock for generating significant returns in the long run.

Read more »

dividends grow over time
Tech Stocks

Got $1,500? 2 Tech Stocks to Buy and Hold Forever

Two tech stocks with high-growth potential are sound prospects for long-term investors.

Read more »

Soundhound AI is a leader in voice recognition software
Tech Stocks

3 Tech Stocks I’m Looking to Buy in January

From tech stocks with consistent growth histories to stocks experiencing a temporary bullish momentum, there are multiple attractive options in…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Tech Stocks

Take Full Advantage of Your TFSA: Growth Strategies for 2025

Maximize your TFSA in 2025 with proven growth strategies. Learn how to build a tax-free portfolio, avoid common mistakes, and…

Read more »

up arrow on wooden blocks
Tech Stocks

1 Soaring Stock I’d Buy Now With No Hesitation

Although it's from a rapidly evolving discipline and carries unique risks, the robotics stock's growth potential is too formidable and…

Read more »

Biotech stocks
Tech Stocks

Digital Healthcare Boom: 2 TSX Stocks Transforming Canadian Medicine

Even though telehealth stocks carry the risk factor of the tech sector and other innovative stocks, the profit margin can…

Read more »