IBM Finally Delivers Robust Numbers

International Business Machines (IBM) finally delivered the long-awaited robust quarterly numbers that retail investors and Wall Street had been craving, lifting the stock by 10% in a single session post-earnings. IBM had been trading in the doldrums for months as the bear market in Q4 2018 took the stock down to the sub $120 level, where it traded for months until its Q4 earnings release broke this negative trend. IBM suffered a stock implosion after its Q3 earnings release that fell short of expectations coupled with its announcement that it will be acquiring Red Hat (RHT) for $34 billion. The combination of bad news in conjunction with the bear market backdrop yielded an IBM stock that traded at a 5-year low of $106 with a 5.9% dividend yield. IBM has had a long turn in restoring growth after posting 20+ consecutive quarters of declining revenue however IBM had posted 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. As IBM transitions to quarterly revenue growth, in the backdrop of its evolution to emerging high-value segments (i.e. blockchain) and bringing the Red Hat portfolio into the fold, IBM presents a compelling investment opportunity, despite its recent pop after earnings were announced. 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.

Q4 Earnings – 10% Post Earnings Pop

IBM reported Q4 earnings of $4.87 EPS and revenue of $21.76 billion which was a -3.5% year-over-year decline however beat analysts’ targets by $30 million on revenue. IBM popped the following day as the company laid out its growth narrative and Red Hat acquisition. In its faster-growing business segments such as strategic imperatives and Cognitive Solutions, revenue grew by 9% and 2%, respectively. Continue reading "IBM Finally Delivers Robust Numbers"

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

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

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

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"

How Bitcoin Finished An Astonishing Year

Matt Thalman - INO.com Contributor - ETFs


If you look at a chart of Bitcoin during 2017, it really only went higher during the first 11 months. The in the middle of November it was as if the cryptocurrency was strapped to a rocket ship as the price shot higher until mid-December.

While early investors made a killing on Bitcoin in 2017, the real excitement all happened in December. Bitcoin started 2017 at $996, began the month of December at $10,500, then peaked on December 17, 2017, at $19,206, but ended the year at just over $14,000. When Bitcoin hit its peak, it was up nearly 100% for just the month of December, but even after falling $5,000 in only 14 days, it still ended the month up more than 30%.

Bitcoin 2017 (BITCOIN:BITSTAMPUSD)

While Bitcoin may have only risen 30% in December, it increased more than 1,350% in 2017, with nearly 400% of that gain coming in December and 800% of its coming after November 1st. So what happened in the last two months of the year that caused the price of Bitcoin to rocket higher, in such as short period? Continue reading "How Bitcoin Finished An Astonishing Year"