As I expected. After the recent "pumped and jacked" earnings the stock "popped" but I knew like a balloon in a hole in it it would fritter away. Value trap. Stay away.
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The overall Tech sector is way down... the IBM stock will most likely recover slowly.
IBM Stock has lost 10-15 % of its value in the past few days. Ouch! Shareholders cannot be happy campers right now.
I am hoping it will plummet soon
@dz "Hybrid Cloud" is a term they almost invented and they certainly exploited the term to say "hey, look at us." But they are not really a cloud player. Do they even still use the Cloudpak name? Even when they did, it was just repackaged existing slop. Without a doubt, Red Hat is making a difference. But it cannot save Power or Z. Virtually all Z customers are actively finding ways to move work off the platform. This hyping of "hybrid cloud" is pretending that IBM is somehow still making money when work moves to other platforms. IBM consulting might make a few dollars helping customers make this transition. But that is a short term play. The recurring and rich revenue from Z hardware and software is (possibly slowly) being deflated. No customer is going to replace the Z hand cuffs with some other IBM hand cuffs. That would be true even if IBM was particularly competent on other hardware and software platforms. But (Red Hat possibly excepted) they are not.
My claim is that IBM is a bit player and a hanger-on in the (hybrid) cloud space. And that's a gold mine for them compared to AI. How big is Bob every going to get? Why would I go to IBM for my "vibe coding" solution? Why would any Z customer want to go off platform for yet another IBM "solution?" In the years since they have been hyping WCA, how may COBOL programs have been converted to Java and put into production? Are there any real WCA home runs out there? If IBM is so competent in AI, why are AskIT and AskHR (and probably others) so miserably awful? Again, they might have some short term consulting opportunities. But explain where the recurring revenue stream is going to come from.
He has strengthened cash flow. But not through either the use of AI or by selling AI products and solutions. He did that by massive layoffs in high wage countries and a relentless push to move job roles to low wage countries. We are still only in the middle of this transition. It's not clear that this will lead to massive customer success stories and an ongoing rise in cash flow. Also, IBM (and you) brush past the more than 10% increase in debt. Maybe some future rate cuts will help a bit here. (A rate cut might also help share prices -- double win for you.)
The truth is at IBM, we only have hotdogs and water to sell you.
@ev: As soon as I get the RSU shares, I dump them the next day. I do not pay from my own money to pay for IBM stock garbage.
I am so glad I dump all my IBM stock at $318 a share... loving it!
@OP Where is that rascal Kramer when IBM needs him to pump up the stock ?
@e4 and the lucky number today is 285 ! Wonder if Alvind is holed up in a bunker somewhere with his tool Krabanaugh. Exciting times for both of them and the Pipmunks.
@dy - You need to zoom out some, to more than just the last 6 months. From 2011 - early 2024 IBM stock hovered around $150. August 2024 was the first time IBM stock broke $200 in over a decade. The entire runup from $150 to $320 is something that happened over the last 18 months. We'll see $150 again before long, bet on it.
IBM is in steady financial hands under Arvind Krishna’s leadership. He’s stabilized the company, strengthened cash flow, and refocused IBM on hybrid cloud, AI, and enterprise innovation. You can debate layoffs, but pretending IBM is being “pillaged” ignores the facts — this is a company executing a long-term strategy, not drifting.
IBM stock price hovers around $290. It is still over-valuated. In reality, it should not exceed $100. That is the value of what is left of IBM assets. The rest is just paying for garbage.
@a8 but, but , but....Alvind wants growth and job growth for his beloved motherland, India. Anything less is not worthy of discussion. Unless of course, you are referring to yet more medals being pinned on Alvind's chest pinned by none other than the great Modi.
Investors are concerned about an AI bubble
@OP Well, to be fair, many tech stocks are getting hit today…
Endless reduction of employee headcount and slashing of investment spending is not a strategy for long term growth.
It should go lower. Wait and see. Reality catches up with the lies and deceit.
The Indian clown at top can talk but cannot deliver. He is not smart.