NYSE:IBM

IBM Common Stock (IBM)

286.25
+1.41 (0.50%)
as of Jun 8, 2026, 2:04:23 pm Market Open.
274 watching
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Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 24 opinions in the last 12 months.

IBM has demonstrated significant growth, especially in its hybrid cloud and AI ventures, while also benefitting from its strong consulting business. Analysts are bullish about its future, pointing to potential upside due to innovations in quantum computing and a robust software portfolio. Despite a recent pullback in stock price, many reviews highlight IBM's reasonable valuation, growth potential, and healthy margins. However, the company faces challenges from competition and mixed short-term sentiments, with some experts suggesting caution due to valuation concerns and rotating into other tech stocks. Overall, IBM is viewed positively for its long-term prospects, although investors should remain vigilant for entry points during market dips.

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Consensus
Buy
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Valuation
Fair Value
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COMMENT

IBM vs ORCL? Everyone is looking for the next MSFT. He would go with IBM. There are some new high level managers, who he feels will best take them into that direction. The problem with IBM is that the shares are trading near where analysts are setting their target price. He might buy 1/3 of a position here.

DON'T BUY

Oracle vs. IBM You get what you pay for. He's never made money in a value tech stock. If a tech stock can't grow, how can it attract investors? Oracle has legacy issues. Neither Oracle or IBM is his first choice. There are better choices in tech.

PARTIAL BUY

He bought it last year around $140. They put the CEO of Red Hat (that they bought) to be their president, and head of cloud services of RH to be IBM's CEO, but this is a big ship to turn around. Their legacy businesses are in decline and are not as well-positioned as peers MSFT and Amazon. Their cloud services grew 25% last quarter. There should be higher growth in the future.

BUY
You need to grow your earnings if you want to do well in the market and should grow your profitability steadily. IBM-N has failed at these. As a result the shares have fallen lower and lower. They gave us a technical buy signal and he thinks this stock could bounce to $164 and is good for a trade. The ROE is continuing to fall, however, so it is only good for a trade.
RISKY
As a trade Short-term: buy. Any longer, this fails to break past $150, a level it hasn't breached for a long time.
DON'T BUY
The chart is forming a triangle, which will either break up or down, based on investor indecision. He predicts a market pullback in coming weeks, so he predicts IBM will break down. Have stop levels in place. There are better charts elsewhere.
BUY
IBM is getting into the cloud business and he believes they will benefit with banks moving to the cloud. Home Capital has moved their business in the cloud and they used IBM. 4% yield.
COMMENT
Warrant Buffet never throws in the towel – he does not sell anything. He sold this. The company has revenue growth in decline, the balance sheet is getting worse and they are propping up the stock by share buybacks. They acquired Red Hat at a ridiculous multiple. IBM is so far behind AMZN-Q in Cloud.
RISKY
In this year of great volatility in the tech space, he uses IBM more as a trading stock. Buy it at $130 and sell it at $170. He is looking at it again, but puzzling why it is down at the lower range again. They have a lot of hidden value in their patents that go into cognitive and AI deep learning, both of which will be in the auto autonomous growth space. (Analysts’ price target is $148.00)
WEAK BUY

He wouldn't buy IBM for the dividend. The valuation is good. The risk is Red Hat to move to cloud computing that hasn't paid off yet. It's at a 10 times multiple, so it is still pretty cheap. The balance sheet looks good. Current yield of 4.8% is safe.

DON'T BUY

IBM should be killing it now--huge--considering macro tech trends like machine-learning, but IBM doesn't, can't, make it happen. They were a hardware business then acquired software businesses which increased their profits. After that, they bought back shares, which is a good idea in general, but IBM should not have. Rather, they should have reinvested to innovate. He doesn't know if their Red Hat deal will work out.

TOP PICK

The most hated stock on the S&P. IBM is doing a lot of things right. It trades much lower vs. its peers, so it doesn't take a lot to get a 20-30% return out of it. The bar is set so low. The EPS is around 10-11x. They just closed on the Red Hat cloud deal. Revenue growth is 2-3% annual, but they are cutting out big-revenue, but low-margin contracts which should improve their bottom line. Red Hat's CEO could be the next IBM head, which is a plus. (Analysts’ price target is $154.76)

DON'T BUY
They are a single digit grower, with a well supported dividend. It is a hardware name. He likes the theme. He prefers IGB-N.
DON'T BUY

It's cheap now and making good cash flow. However, it isn't growing. It missed out of the cloud computing business. They paid a lot for Red Hat, and integrating that will be interesting and no guarantee it'll work. IBM is on probation for him. He'd rather buy MSFT or Google.

PAST TOP PICK

(A Top Pick Jul 23/18, Down 2%) A value tech stock. He sold this and bought Google, because it was growing faster. IBM has trouble growing; it's been stagnant.

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