NYSE:IBM

IBM Common Stock (IBM)

286.25
+1.41 (0.50%)
as of Jun 8, 2026, 2:04:23 pm Market Open.
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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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Similar
MSFT
HOLD

He bought it about two months ago around $140. The Red Hat acquisition created a buying opportunity he thought. The company is moving into the cloud space and IBM has strong footholds with the banks in the data space. When the banks move to the cloud, IBM will be the company they turn to. He is very comfortable with this being a solid hold.

WAIT
He wants to see how the balance sheets looks after the acquisition of Red Hat. He wants to wait to see how it unfolds in the September financials.
DON'T BUY
A tempting 4.7% dividend. It's also very cheap at 10x 2020 earnings. Their most recent quarter reflected solid global cloud services. Their Red Hat acqusition could drive IBM revenues. But he models only 3% EPS growth. Q1 revenue was lower than expected as was forward guidance. It's an okay name and okay dividend, but you're better off with higher tech names, even without dividends.
DON'T BUY
He'd stay away from hardware, though their chart is OK. Their chart is approaching resistance where previous shareholders will sell off as the share price recover ground. Due to Apple, computer hardware has really struggled. IBM has a buyback in place and pays 5% yield. They are doing the right things, but look elsewhere.
DON'T BUY
Unlike like the rest of the sector it has declining revenues. They spent too much o an acquisition. It has been a poor capital allocator. Needs to generate organic growth.
DON'T BUY
At its low? Terrible balance sheet. Grasping at straws, making an expensive acquisition because they're late to the party. Not at all interested. Buy Apple if you're looking for a beaten-up tech company.
COMMENT
IBM (IBM-N) vs Microsoft (MSFT-Q) No brainer for him he prefers Microsoft. Microsoft is up 30% YTD, they are doing a lot of things very well. He would buy half Microsoft and half Apple and would leave IBM out of this. Microsoft is not cheap, Apple is cheap, so at least you are getting some value incorporated into the investment.
COMMENT
Cheap at 9.6x earnings. Solid dividend. Red Hat deal was good for them. It's tempting to buy now, but...he needs to see more of a catalyst, other companies with better growth.
DON'T BUY
There are better tech investments out there. Red Hat was a pricey acquisition, a sign that they need to restart long-term growth. Behind the game in the Cloud. Microsoft, Amazon, and Google, all have a better toehold.
BUY
It’s in the right place. It’s selling off with everything else. Very appetizing here.
TRADE
Company that has historically used propitiatory software and buying an open source company. Very interesting. They have a very good portfolio of big-ticket software solutions for banks and clients like that. They had some restructuring. In case of a correction would probably do well because it is down heavily. He is worry a little bit about their debt. (Analysts’ price target is $155.88)
DON'T BUY
They did a huge deal with Red Hat this week. Over the last 10 years IBM has been a disaster. With Red Hat, they're getting into the cloud space, but this move is too late. Also, IBM paid a lot for Red Hat. For years, IBM neglected their structural decline and only now they get into cloud. IBM must slim down by selling more divisions and only then focus to the cloud.
DON'T BUY

Contrarian investors think that beaten-up stocks like this will turn around. IBM just beat their Q3 slightly, but there's no growth. He sees -2% growth. The dividend is solid. If you have US dollars, look at BAC instead.

BUY

He started looking at it a week ago. He owns Microsoft and Apple in this space. Their latest earnings were not that strong. They don’t have the big growth engines like Microsoft. However, it is incredibly cheap. They are doing a lot with AI, and is at a level that is interesting.

COMMENT

Technology changes so much over time that you have to be wary when you go into the technology space as management. It might be worthwhile to look at other plays. It is nice to invest in companies that have been around for a long time.

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