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Tag: IBM Stock

  • IBM Stock Is Rising Following Release Of Financial Results

    IBM Stock Is Rising Following Release Of Financial Results

    In the pre-market hours, International Business Machines Corporation (NYSE: IBM) witnessed a notable 7.51% upswing, reaching $187.00. This signals an upward trajectory for the company’s stocks in the US market. The surge follows the public release of the company’s financial reports immediately after the regular trading session concluded.

    IBM disclosed its financial outcomes for Q4 2023 yesterday, manifesting revenue expansion across all business segments. The growth is attributed to the continued adoption of its artificial intelligence (AI) and hybrid cloud solutions. Notably, the company experienced a nearly twofold increase in the business volume for watsonx and generative AI from Q3 to Q4, reflecting a substantial surge in customer demand for AI.

    The annual sales surge met predictions, and IBM surpassed its target for free cash flow. Anticipating a revenue performance in 2024 consistent with its mid-single digit model, IBM aims for a free cash flow of approximately $12 billion, guided by its robust portfolio and a history of innovative accomplishments. Noteworthy, software revenue witnessed a 3% uptick, while IBM reported a 4% quarterly revenue gain, totaling $17.4 billion.

    Infrastructure revenue increased by 3%, while consulting revenue showed strong growth of 6%. IBM recorded $61.9 billion in sales for the whole fiscal year, a 2% rise. Growth was also evident in net cash from operating operations, which increased by $3.5 billion to $13.9 billion. To achieve $11.2 billion, free cash flow increased by $1.9 billion.

    In a separate development, IBM unveiled AI Stories with IBM watsonx—a generative AI solution collaboratively created with the Recording Academy. This initiative aims to generate and amplify editorial content surrounding GRAMMY nominees before and during the 66th Annual GRAMMY Awards.

    The AI Stories, powered by IBM’s AI and data platform watsonx, will enable the Recording Academy’s editorial team to enhance its coverage of GRAMMY-nominated artists. This innovative approach promises to deliver a more personalized digital experience, fostering deeper connections between millions of music enthusiasts and the artists they admire, while also introducing them to new talents.

  • Investment Evaluation: Visa vs. IBM – Which is the Superior Choice?

    Investment Evaluation: Visa vs. IBM – Which is the Superior Choice?

    In the quest for the best investment, the stock market offers a plethora of options. Among the prominent contenders are technology giant IBM and payment technology leader Visa.

    This article delves into an exhaustive comparison of IBM stock and Visa stock to assist investors in their decision-making process.

    Overview of IBM and Visa

    International Business Machines Corporation, commonly known as IBM, stands as a global technology entity providing a diverse range of integrated solutions and services worldwide.

    In contrast, Visa Inc. functions as a prominent payment technology firm operating both in the United States and internationally.

    These two corporations have established distinctive positions within their respective sectors, making substantial contributions to the progress of technology.

    IBM and Visa’s Business Segments

    IBM operates through four primary business segments: Software, Consulting, Infrastructure, and Financing.

    These segments cater to various industry needs, including hybrid cloud platform and software solutions, business transformation services, on-premises, and cloud-based server and storage solutions, and financing services.

    Visa, however, operates through VisaNet, a transaction processing network enabling authorization, clearing, and settlement of payment transactions. It offers a range of services, including credit, debit, prepaid card products, tap-to-pay, tokenization, and click-to-pay services.

    Stock Price Evolution

    In the previous year, IBM’s stock exhibited favorable growth, whereas Visa showcased a more vibrant performance. The performance of these stocks over various periods is outlined below:

    One Week:

    IBM: 0.17% increase

    Visa: 0.90% increase

    One Quarter:

    IBM: 13.08% increase

    Visa: 5.69% increase

    One Year:

    IBM: 13.66% increase

    Visa: 21.92% increase

    Year-to-Date (YTD):

    IBM: 20.89% increase

    Visa: 25.18% increase

    This summary table offers a snapshot of the performance of both stocks, enabling investors to compare and analyze their respective growth trends.

    Key Stock Indicators

    When comparing stocks, key indicators such as short interest, trading volume, and market capitalization provide valuable insights.

    For IBM, the short interest is 2.96%, the trading volume is 11,014,050, and the market cap is $148.14 billion. For Visa, the short interest is lower at 1.99%, but it boasts a higher trading volume of 13,352,071 and a significantly higher market cap of $518.66 billion.

    Fundamental Stock Indicators

    A look at the fundamental stock indicators of both companies provides a deeper understanding of their financial health.

    IBM, with a workforce of 311,300, presents a dividend yield of 4.15%, generating sales amounting to $61.17 billion and an income of $6.92 billion. The sales quarter-over-quarter (Q/Q) growth for IBM stands at 4.57%.

    On the other hand, Visa, with a workforce of 28,800, has a lower dividend yield of 0.81%, but significantly higher sales at $32.65 billion and income at $16.99 billion. Visa’s sales Q/Q growth is robust at 10.56%.

    Visa’s Earnings Beat

    In fiscal Q4, 2023, Visa delivered impressive earnings of $2.33 per share, surpassing estimates. The revenues also exceeded projections, reaching $8.61 billion. This can be attributed in part to the +9% year-over-year growth in payment volumes, reflecting a rebound in cross-border travel.

    Conclusion: IBM vs Visa

    While both IBM and Visa present compelling investment opportunities, the decision ultimately depends on individual investor objectives.

    IBM offers a higher dividend yield, making it attractive for income-focused investors. In contrast, Visa’s robust growth and earnings beat make it a potential choice for growth-oriented investors.

    The comparison between IBM Vs Visa is indicative of the broader market trends. Both companies are giants in their respective fields and present numerous investment opportunities. However, their performance, key indicators, and fundamentals provide a nuanced understanding that can help investors make an informed decision.

    FAQ’s

    What factors should I consider when comparing Visa and IBM for investment?

    Explore key metrics such as stock performance, market trends, and financial indicators to make an informed decision.

    How do Visa and IBM differ in terms of market capitalization and financial stability?

    Understand the market cap and financial fundamentals of each company to gauge their stability and potential for long-term investment.

    What recent developments or earnings reports should I be aware of for both Visa and IBM?

    Stay informed about the latest news, earnings reports, and any significant events that may impact the investment prospects of Visa and IBM.

    Which industry trends and external factors might influence the future performance of Visa and IBM?

    Consider external factors, such as industry trends and global events, to anticipate how Visa and IBM might respond to changing market conditions.

    What are the growth prospects and long-term outlook for Visa compared to IBM?

    Evaluate the growth potential and future outlook of Visa and IBM to determine which stock aligns better with your investment goals and risk tolerance.

  • IBM Announces Plan To Split Off Managed Infrastructure Services Unit Into New Public Company

    IBM Announces Plan To Split Off Managed Infrastructure Services Unit Into New Public Company

    International Business Machines Corporation (NYSE: IBM) shared traded up 12.55% in the pre-market trading session of Thursday after the company announced that it has decided to split off its Managed Infrastructure Services unit of its Global Technology Services division into a new public company. The decision has been taken to focus more on a hybrid cloud growth strategy to provide the best experience to its customers.

    The cloud-focused computer group has disclosed that the separation of an infrastructure unit is expected to complete by the end of 2021. This separation is a tax-free split off to the shareholders of IBM. CEO Arvind Krishna said that now is the right time of separation so that the two market leaders will be able to focus on what they do best.

    He said that the International Business Machines Corporation will focus on Artificial intelligence capabilities and open hybrid cloud platforms while the NewCo will be able to design, run and modernize the infrastructure of the world’s most important organizations. After the separation both the companies will be able to focus on their respective businesses and will be able to improve their growth by capturing new opportunities and be able to create value for clients and shareholders.

    International Business Machines Corporation (NYSE: IBM) shares traded up 11.69% at $138.52 during the pre-market trading session on Thursday. It has gained +2.10 at $124.07 on the trading session of Wednesday. This company stock fluctuated between the 52-weeks low range of $90.56 and a high range of $158.75. IBM has moved up 37.00% from its 52-weeks low and moved down -21.85% from its 52-weeks high. This company has a total market capitalization of $110.97 billion at the time of writing.

    International Business Machines Corporation also disclosed that it is projected third-quarter revenue of $17.6 billion and an adjusted profit per share of $2.58. IBM will speed up clients’ digital transformation journeys, and NewCo will speed up clients’ infrastructure modernization efforts.