2024-02-07 10:40:00 ET
Summary
- At spin-off, each Kyndryl share was worth 5% of an IBM share and the company was a loss-making business in a declining industry that few wanted to own.
- Although Kyndryl appeared to be an unattractive business, several clues suggested it could turn itself around as a standalone company.
- KD is now growing businesses that compete with IBM, such as IT consulting and helping clients move to AWS or Azure.
The following segment was excerpted from this fund letter.
Kyndryl ( KD )
Kyndryl is a spin-off from IBM that is successfully turning itself around. The company is the largest provider of services to manage on-premise data centers, a market that is declining at low to mid-single digits rates per annum. IBM offloaded Kyndryl in 2021 as part of an attempt to rebrand itself as a growing and cloud-focused business....
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Plural Investing - Kyndryl: New Initiatives Should Return KD To Revenue Growth In 2025