Source: Barron's
I have been bearish on IBM (IBM) for several years. As more information is being disseminated and stored over the Internet, cloud computing has become all the rage. The company has been transitioning from mainframe computing to cloud computing. That transformation has been a long, arduous process. The company has stagnant to declining revenue growth, making it difficult to recommend the stock. Its acquisition of Red Hat (RHT) for $34 billion was expensive, but it could pay dividends down the line.
The Revenue Impact Will Be Small Potatoes
The revenue impact