Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 20, 2017

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $170.55, New York symbol IBM, is one of the world’s largest computer companies, with operations in over 175 countries. Due to slowing demand for its mainframe computers and consulting services, IBM has shifted to faster-growing areas such as cloud computing (the storage of files and programs using the Internet). It’s also developed analytics software that can process increasingly large amounts of data. That includes its Watson artificial intelligence technology. Excluding currency rates, revenue from Strategic Imperatives (IBM’s cloud, analytics and other new businesses) jumped 33% in the fourth quarter of 2016. These operations now account for over 40% of the company’s total revenue. However, weaker demand for IBM’s traditional products cut revenue by 1.3% in the quarter, to $21.8 billion from $22.1 billion a year earlier. That still beat the consensus forecast of $21.6 billion. The company’s overall earnings gained 1.5%, to $4.8 billion from $4.7 billion; per-share profits rose 3.5%, to $5.01 from $4.84, on fewer shares outstanding. Those figures…