International Business Machines ( (IBM) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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IBM’s stock price surged after-hours following a strong earnings report, highlighting earnings per share of $3.92, which exceeded expectations. Although overall sales saw a modest 1% increase, the software segment grew by 10%, counterbalancing declines in infrastructure and consulting revenues. The market responded positively to IBM’s optimistic future outlook, including a projected 5% revenue growth and $13.5 billion in free cash flow by 2025. Analysts had mixed reactions; Morgan Stanley slightly lowered its price target due to valuation concerns, while JPMorgan and BofA raised theirs, impressed by IBM’s software and AI sectors, continued turnaround, and attractive dividends.
More about International Business Machines
YTD Price Performance: 2.60%
Average Trading Volume: 3,907,618
Technical Sentiment Consensus Rating: Sell
Current Market Cap: $208.7B
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