IBM - IBM: Acquisitions Collaborations And The Dividend Make Me Bullish
2024-07-03 09:00:00 ET
Summary
- IBM is focusing on cloud services, AI, and consulting for the future, collaborating with Microsoft and expanding its watsonx portfolio.
- Despite a debt load of $53 billion, the Company's financials are strong, with $20 billion in liquidity and manageable debt obligations.
- IBM's undervalued stock, strong financial position, and commitment to dividends make it a promising investment in cloud and AI infrastructure.
International Business Machines (IBM), also known as Big Blue, has been making headlines again. IBM is doing everything it can to focus on the future and shed any existence of its legacy business. IBM's future is in cloud services, AI, and consulting, which is where their focus has been. IBM announced that they will collaborate with Microsoft ( MSFT ) in cybersecurity to help clients protect their hybrid cloud assets while modernizing their security offerings. IBM is expanding its watsonx portfolio, which will allow AWS users to benefit from a suite of products within IBM's watsonx AI and data platform. It's also been a busy year for IBM as they are acquiring HashiCorp for $6 billion to enhance their hybrid cloud platform. Since IBM took over RedHat, they have acquired companies such as Octo and Apptio Inc and made 4 acquisitions in 2024. Over the past year, IBM's shares have appreciated by 32.64% to $177.30 after spending years trading sideways below $140. A lot of investors wrote off IBM and flocked to companies such as Amazon ( AMZN ) And Alphabet ( GOOGL ) during the massive tech run, but IBM has been mounting a comeback. I have been bullish on IBM for years, and I think shares are going higher as they're in a strong financial position and shares look inexpensive on a forward basis ....
IBM: Acquisitions, Collaborations, And The Dividend Make Me Bullish