
NYSE:IBM
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.
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.
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.
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.
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)