IBM gives you the cloud

Article Excerpt

IBM $128.69, is a buy. The stock (New York symbol IBM; Shares o/s: 887.9 million; Market cap: $114.3 billion; TSINetwork Rating: Above Average; Yield: 5.1%) gives investors exposure to one of the world’s largest computer firms, with operations in over 175 countries. Despite new operations, IBM’s revenue in the quarter ended March 31, 2020, fell 3.4%, to $17.57 billion from $18.18 billion a year earlier. Weaker demand for the company’s legacy operations offset strong growth at its Cloud & Cognitive Software business. IBM earned $184 a share in the latest quarter, down 18.2% from $2.25. However, that beat the consensus estimate of $1.80. The COVID-19 outbreak has prompted many businesses to put off new spending on computer equipment and services, However, that pent-up demand bodes well for IBM’s growth when the pandemic eases. The crisis—and the dramatic rise in employees working remotely—also helps to highlight the value of the company’s cloud computing services. services. …