On Monday, International Business Machines Corporation (NYSE:IBM) released fourth-quarter earnings that topped expectations on both the top and bottom lines, marking the company’s first earnings report since the spinoff of Kyndryl, its information-technology services division.
After the market closed, IBM released its earnings report. IBM announced earnings of $3.35 per share on $16.7 billion in revenue after adjusting for the Kyndryl spinoff. IBM was projected to report earnings of $3.30 per share on $16.1 billion in revenue, according to analysts. This meant that the revenue increased by 6.5 percent years over year.
IBM stock technical analysis
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Yesterday IBM stock jumped 5.7% to $136.10 during after-hours trading on the stock market. In the last month, IBM has been trading in the $124.19 – $142.20 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
IBM has an average volume of 5735650. This is a good sign as it is always nice to have a liquid stock. However, the short term trend is negative; the long term trend is neutral. This means that nothing much exciting is going on here.
When comparing the performance of all stocks over the past year, IBM turns out to be only a medium performer in the overall market: it outperformed 69% of all stocks. The stock is currently trading in the middle of its 52-week range. This is in line with the S&P 500 Index, which is also trading in the middle of its range.
IBM is part of the IT Services industry. There are over 150 other stocks in this industry, and IBM outperforms 77% of them.
Summary
IBM has undergone a lengthy and extensive reorganisation. IBM’s multi-year transformation has centred on the creation and expansion of what the firm refers to as an open hybrid cloud platform. Hybrid cloud architecture will allow IBM to deliver both a public cloud and a private cloud to its customers. This means that the stock still has a huge potential for growth.
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