Tag: International Business Machines Coproration (IBM)

Will IBM's Red Hat Acquisition Finally Move The Needle?

Posted on by Noah Kiedrowski

International Business Machines (IBM) had been trading range bound for five months from mid-April through mid-September, trading between roughly $140 and $145. Before its Q3 earnings, IBM had finally broken out to $154 with a subsequent implosion after its earnings release that fell short of expectations coupled with its announcement that it will be acquiring Red Hat (RHT) for $34 billion.

IBM’s stock is now at a 52-week low after the company missed revenue targets, notably a drop in Cognitive Solutions and server weakness implying that its revived nascent growth earlier this year will be subdued moving forward. IBM’s stock has been decimated and now trades at ~$115 per share or down over 30% from it's 52- week high of $171. IBM has had a long turn in restoring growth after posting 20+ consecutive quarters of declining revenue however IBM had posted back-to-back quarters of revenue growth as of late.

This growth has come on heels of its long-term imperatives beginning to bear fruit in emerging high-value segments that has fundamentally changed its business mix while evolving its offerings to align with new age information technology demands. The Red Hat acquisition will ostensibly augment its transition away from its dependency on legacy businesses to the future of cloud, artificial intelligence, and analytics. Continue reading "Will IBM's Red Hat Acquisition Finally Move The Needle?" →

IBM – Blockchain Technology Becoming Ubiquitous

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech - Blockchain Technology


“What the internet did for communications, blockchain will do for trusted transactions.”
— Ginni Rometty, IBM Chief Executive Officer

Introduction

I introduced International Business Machines Corporation (IBM) as a play on the emerging blockchain technology segment earlier this year to augment its transition away from its dependency on legacy businesses to the future of cloud, artificial intelligence, and analytics. IBM has struggled to restore growth, posting 20+ consecutive quarters of declining revenue however IBM has posted back-to-back quarters of revenue growth as of late. This growth has come on heels of its long-term imperatives beginning to bear fruit in emerging high-value segments that has fundamentally changed its business mix while evolving its offerings to align with new age information technology demands. A new frontier of growth lies in the nascent blockchain technology as IBM is a first mover in this promising, emerging technology. As IBM transitions to quarterly revenue growth, in the backdrop of its evolution to emerging high-value segments (i.e., blockchain) the company presents a compelling investment opportunity considering its suppressed valuation. In addition to the evolving business mix in strategic imperatives, IBM offers a great dividend, share buyback program while continuously acquiring companies to drive the business into the future. Continue reading "IBM – Blockchain Technology Becoming Ubiquitous" →

IBM - Blockchain Technology Driving Growth

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech - Blockchain


“What the internet did for communications, blockchain will do for trusted transactions.”
— Ginni Rometty, IBM Chief Executive Officer

Introduction

International Business Machines Corporation (IBM) has struggled in recent years to transition away from its dependency on legacy businesses to the future of cloud, artificial intelligence, and analytics. Despite this long transition of posting 20+ consecutive quarters of declining revenue, IBM has finally posted its first revenue growth in nearly six years. Its long-term imperatives are beginning to bear fruit in emerging high-value segments that has fundamentally changed its business mix while evolving its offerings to align with new age information technology demands. New talent has driven these long-term business initiatives in these key areas as ~50% of its employee base has been added to the company within the last five years. A new frontier of growth lies in the nascent blockchain technology as IBM is a first mover in this promising, emerging technology. As IBM transitions to quarterly revenue growth, per the recent guidance of low single-digit growth, in the backdrop of its evolution to emerging high-value segments (i.e., blockchain) the company presents a compelling investment opportunity. In addition to the evolving business mix, IBM offers a great dividend, share buyback program while continuously acquiring companies to drive the business into the future.

Blockchain Technology and Applications

Blockchain technology is the architecture that underpins the volatile cryptocurrency markets. This technology applies to enterprise applications since it employs a decentralized database, open ledger, and incorruptible transactional capabilities. Blockchain applies to any transactional business model whether it’s financial or goods being transacted. The open ledger concept within the blockchain makes it incorruptible as any changes need confirmation from multiple parties and any changes can be seen at any time with a permission blockchain. As a function of the decentralization, there’s no central repository or clearinghouse to be hacked or accessed. The blockchain speeds up and by-passes these intermediaries (i.e., a clearinghouse of the bank) to achieve transactions within minutes and not days (Figures 1 and 2). Continue reading "IBM - Blockchain Technology Driving Growth" →