Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, July 22, 2022

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $128.25, New York symbol IBM, is still a buy. The company is one of the world’s largest computer firms, with operations in over 175 countries. On November 3, 2021, IBM completed the spinoff of Kyndryl Holdings Inc. (New York symbol KD). That firm helps corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares. IBM still holds 19.9% of Kyndryl’s shares. It plans to dispose of them by the end of 2022. The spinoff is letting IBM focus on its more-profitable cloud computing and consulting businesses. However, the higher U.S. dollar is hurting the contribution from its overseas operations. In the three months ended June 30, 2022, IBM’s revenue rose 9.3%, to $15.54 billion from $14.22 billion a year earlier. That topped the consensus forecast of $15.18 billion. If you exclude exchange rates, revenue in the quarter rose at a faster rate of 16%. About 5% of that increase came from sales to Kyndryl. Excluding…

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