IBM News and Headlines - International Business Machines Corp

GuruFocus Articles Total 1044
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IBM is in decline, and the Red Hat acquisition does not solve its issues

The recent Red Hat acquisition is touted to be driving the "creative destruction" at International Business Machines Corp. (IBM), i.e. the selling off of resources from mature declining businesses in order to funnel cash into emerging fast-growing ones.

However, in my view, this isn't enough to fix IBM's problem: a prolonged decline in revenues. I have come to this conclusion after analyzing the company's third-quarter earnings results, which were published after the market closed on Monday.

The results showed that Cloud & Cognitive Software (CCS) revenues reached $5.6 billion, up 7% year-over-year. CCS comprises Cloud & Data Platforms, which includes

242 Views    Panos Mourdoukoutas    2020-10-20 21:51
Nasdaq down -1.65%

The Dow Jones Industrial Average closed at 28,195.42 on Monday with a loss of 410.89 points or -1.44%. The S&P 500 closed at 3,426.92 for a loss of 56.89 points or -1.63%. The Nasdaq Composite closed at 11,478.88 for a loss of 192.67 points or -1.65%. The VIX Volatility Index was higher at 29.18 for a gain of 1.77 points or 6.46%.

Monday's Market Movers

U.S. indexes closed the day lower, led by losses from the energy sector. Investors were looking to China where gross domestic product data showed a 4.9% increase year over year. China's Ant Financial is also

31 Views    Julie Young    2020-10-20 13:46
The IT industry is conducive to economies of networking - the benefits associated with a large base of users - which favor the first-movers

International Business Machines Corp. (IBM) is trying to get its business strategy right: focus on the fast-growing cloud and artificail intelligence segments of the information technology industry and catch up with the likes of Amazon (AMZN), Alphabet's Google (GOOG) and Microsoft (MSFT).

On Thursday, IBM announced that it will split itself into two publicly traded companies, one of which will keep legacy IT infrastructure businesses, while the other will keep cloud services and AI.

The company's move is part of a broader strategy of "creative destruction," where the technology giant has been shedding declining traditional business segments and expanding into

372 Views    Panos Mourdoukoutas    2020-10-09 18:49
The move unlocks investor enthusiasm and funding, but it enters a competitive focus area

International Business Machines Corp. (IBM) saw its stock soar more than 8% on Thursday morning before settling down slightly to around $130.93 in midday trading. What prompted the movement was the company's announcement that it will be spinning off its legacy business, the managed infrastructure services unit, into a separate company by the end of 2021.

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Investor enthusiasm for IBM's stock has waned over the years as the company matured and lost its "popular tech stock" status, with many seeing the legacy business as dead weight that covers up the profits of its faster-growing

447 Views    Margaret Moran    2020-10-08 21:30
The cloud-based software solutions provider has surged after being upgraded by analysts

Splunk Inc (SPLK) has been a company to watch out for in 2020 as the macro tailwinds coupled with the management's investments in its cloud offerings and observability solutions have propelled the stock to a new 52-week high.

The company's annual recurring revenue continues to grow at a solid pace, and it also showed an improvement in its contract durations. There have been some key management changes as Splunk delivered a decent quarterly result and had an optimistic outlook for 2020. This prompted a number of equity research analysts to upgrade the company's rating and led to increased buying and

236 Views    Ishan Majumdar    2020-10-08 15:03
Thoughtful advice from the late Peter L. Bernstein

In 2004, Wall Street Journal reporter Jason Zweig interviewed the late Peter L. Bernstein, the esteemed author of investment classics like "Against the Gods: The Remarkable Story of Risk" and "Capital Ideas: The Improbable Origins of Modern Wall Street." Zweig described Bernstein as an "economist, historian, investment thinker and one of the wisest and most philosophical people on Wall Street." During the interview, Zweig asked Bernstein about the most important things that he had to unlearn over the course of his career. This was Bernstein's answer:

"That I knew what the future held, I guess. That you can figure

721 Views    The Science of Hitting    2020-09-24 15:45
I got very excited when I came across an excerpt from Jordan Ellenberg's book, How Not to Be Wrong.

I got very excited when I came across an excerpt from Jordan Ellenberg's book, "How Not to Be Wrong." His book was written to teach readers how much logic and common sense is provided by math. He tells the story of Abraham Wald during World War II, who worked for the Statistical Research Group. The SRG was a group of mathematicians who sought to improve the U.S.'s chances of success by analyzing data on a myriad of subjects. The case that opens Ellenberg's book is how Wald approached analyzing bullet holes on planes that came back from missions. Below is

528 Views    Smead Capital Management    2020-09-15 19:26
The deal has some similarities to Buffett's IBM buy

A few days ago, I wrote an article about my thoughts on Berkshire Hathaway's (BRK.A) (BRK.B) latest tech deal. The deal will see the conglomerate invest more than $570 million into the IPO of cloud database company Snowflake.

In the article, I noted that I think Todd Combs and/or Ted Weschler was most likely behind the transaction, as Warren Buffett (Trades, Portfolio) would be unlikely to be investing in an IPO or high-valued tech stock.

However, this is all still speculation until we hear word from Buffett himself. There are also a couple of

773 Views    Rupert Hargreaves    2020-09-11 14:56
Guru further slashes stake in struggling bank

After slimming several of its positions in bank stocks during the second quarter, Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway (BRK.A)(BRK.B) revealed last week it further curbed its long-held stake in Wells Fargo & Co. (WFC) by 42.1%.

The legendary guru, who leads the Omaha, Nebraska-based insurance conglomerate, follows a long-term value investing approach that focuses on companies that have understandable business models, favorable long-term prospects and competent management teams that are available at attractive prices.

According to GuruFocus Real-Time Picks, a Premium feature, Berkshire divested of 100.02 million shares of the San Francisco-based bank on Aug.

1668 Views    Sydnee Gatewood    2020-09-08 16:52
Markets in the red, shares of Ciena sink

US Markets

U.S. stocks were in the red on Thursday after a record session yesterday. U.S. jobless claims fell by 130,000 to a seasonally adjusted 881,000 in the last week of August, but it is still historically high. The Dow slid 0.08% to 29,063, the S&P 500 index fell 0.75% to 3,554 and the Nasdaq Composite Index was down 1.74% to 11,847.

Gainers

• NiSource Inc​ (NI) +2.1%

• FedEx Corp (FDX) +1.4%

• International Business Machines Corp (IBM) +0.94%

• NRG Energy Inc (NRG) +0.85%

• Dominion Energy Inc (D) +1.1%

Losers

• Juniper Networks, Inc. (JNPR) -5.3%

67 Views    Omar Venerio    2020-09-03 15:16
Financial strength and profitability make this small-cap a good growth prospect

In June 2020, CACI International Inc (CACI) won what may be its biggest contract ever: a $1.5 billion deal with the National Geospatial-Intelligence Agency (an arm of the U.S. Department of Defense) to supply its enterprise information technology, transport and cybersecurity services.

On July 27, it won another significant contract with the U.S. Air Force “to help U.S. forces integrate operations across all domains and against any adversary.” The contract, for which no dollar amount was provided, covers the domains of air, land, sea, space, cyber and electromagnetic spectrum. The goal is to help the Air Force develop its new

160 Views    Robert Abbott    2020-08-06 14:55
The stock could be a value buy amid the positive change in strategy

IBM (IBM) has been reporting decent results, despite the pandemic. More importantly, the financial results show that IBM's corporate strategy is now de-emphasizing financial engineering via stock buybacks and focusing more on growth and deleveraging.

Last year, IBM, often called by the nickname "Big Blue," made one of the most important acquisitions in its history, the acquisition of RedHat. Then, it replaced its CEO with a new one. This is somewhat reminiscent of what Microsoft (MSFT) did in 2014 by replacing a former "marketing/sales/finance" oriented CEO with one with a strong tech and R&D background. Satya Nadella shifted Microsoft

301 Views    Praveen Chawla    2020-07-30 17:05
When you are in a financial euphoria episode, like the one we are in currently, it is hard to visualize the impact it has when it breaks

When you are in a financial euphoria episode, like the one we are in currently, it is hard to visualize the impact it has when it breaks. Historically, it is the leading cause of stock market failure. We thought it would be helpful to discuss the secondary impact of the euphoria on common stocks. What do companies not in the center of the euphoria do when the fever breaks? How much portfolio adjustment do you need to do to protect yourself? What are the investment implications of owning common stocks whose prices have been inflated by mania, but are not

177 Views    Smead Capital Management    2020-07-28 18:15
International Business Machines is trying hard to bring back the glory days via the hybrid cloud

International Business Machines Corp. (IBM), sometimes referred to by the nickname "Big Blue," is trying hard to bring back the old glory days of innovation and growth with the hybrid cloud.

Big Blue has been in the midst of "creative destruction," shunning mature low-profit technology businesses and replacing them with emerging high-margin markets like the cloud and internet security.

On July 20, the computer hardware company reported second-quarter operating earnings per share of $2.18. Total revenue came in at $18.1 billion, down 5.4% over the same period. That's on top of a 3.4% decline in the first-quarter reported back

142 Views    Panos Mourdoukoutas    2020-07-21 22:24
Fund's largest sales of the 2nd quarter

The Parnassus Endeavor Fund (Trades, Portfolio), which manages a $2.57 billion portfolio composed of 26 stocks, sold shares of the following stocks during the second quarter of 2020.

International Business Machines

The fund cut its position in International Business Machines Corp. (IBM) by 78.75%. The trade had an impact of -2.72% on the portfolio.

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The company, which covers a wide range of information technology solutions, has a market cap of $112.20 billion and an enterprise value of $169.92 billion.

GuruFocus gives the company a profitability

65 Views    Tiziano Frateschi    2020-07-21 16:21
Nasdaq gains 2.51%

The Dow Jones Industrial Average closed at 26,680.87 on Monday with a gain of 8.92 points or 0.03%. The S&P 500 closed at 3,251.84 for a gain of 27.11 points or 0.84%. The Nasdaq Composite closed at 10,767.09 for a gain of 263.90 points or 2.51%. The VIX Volatility Index was lower at 24.46 for a loss of 1.22 points or -4.75%.

Monday’s Market Movers

U.S. indexes closed higher Monday, with investors hopeful of a Covid-19 vaccine. A report from Oxford University in partnership with AstraZeneca (AZN) showed success from early-stage human trial data testing a Covid-19 vaccine. The news

21 Views    Julie Young    2020-07-20 22:26
Consider its strong dividend and buyback position against questionable fundamentals

On April 28, International Business Machines Corp. (IBM) became a member of the exclusive Dividend Aristocrats club. This club is made up of S&P 500 companies that have increased their dividends each year for at least 25 years.

Only 66 companies are on the list for 2020, and they are favorites of many investors, especially for income investors. Odds are high that these companies will increase their dividends by more than the inflation rate.

The dividend increase that got IBM into the club was just a penny, bumping the quarterly payment from $1.62 to 1.63. According to Arvind

683 Views    Robert Abbott    2020-07-10 21:36
Discussion of markets and holdings

The second quarter seemed like the first quarter movie was played backwards. At the beginning of the year, stock prices increased modestly and then quickly plummeted in the fastest ever bear market, with the S&P 500 Index dropping by 34% in 23 trading days. The second quarter started with the fastest ever 50-day stock price recovery, during which the S&P 500 shot up 40% (including a few days at the end of March), which was followed by a modest decline. Though not intuitive, a 40% gain doesn’t offset a 34% decline (0.66 x 1.40 = 0.92), so the S&P 500

120 Views    Sydnee Gatewood    2020-07-09 18:28
After delivering a solid result, the data management and analytics player is up for sale

Mergers and acquisitions across the U.S. market are expected to grow over the coming months with companies available for sale at lower valuations and the increasing need for financing by smaller players to counter the economic impacts of the Covid-19 pandemic.

One of the cloud technology players that is in talks with potential buyers for an acquisition over the coming months is known data management and analytics firm Cloudera, Inc. (CLDR). Interestingly, Cloudera’s sector has been one of the few to actually benefit from the pandemic. The company’s stock has appreciated well, but not as much as other cloud peers.

360 Views    Ishan Majumdar    2020-07-06 15:14
Their yields beat the 20-year high-quality market corporate bonds

If you look for stocks that more than double the earnings return the 20-year high quality market corporate bonds are offering to their holders, you could significantly increase your chances of finding value opportunities. The monthly yield on these bonds is 3.34% as of May. The bonds represent corporate loans issued by triple-A, double-A and single-A-rated companies.

Thus, value investors may want to have a look at the following stocks as they grant earnings returns exceeding 6.68% (twice the monthly return on the corporate bonds) and, therefore, have price-earnings ratios below 14.97.

Enterprise Products Partners

Shares of Enterprise Products Partners

202 Views    Alberto Abaterusso    2020-07-01 14:13

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2020-10-22 $ 115.2 (0.12%)
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Is IBM Stock a Buy? - www.fool.com
2020-10-21 $ 115.06 (-1.97%)
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2020-10-16 $ 125.93 (0.83%)
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2020-09-17 $ 124.92 (0.56%)
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