What's Going On With IBM Shares On Wednesday?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 17 2024
0mins
Should l Buy IBM?
Source: Benzinga
- IBM secures $26 million contract with USAID: IBM has secured a five-year contract with initial funding of $26 million from USAID to support the Cybersecurity Protection and Response program for host governments in Europe and Eurasia.
- HashiCorp Inc. acquisition by IBM approved: HashiCorp Inc.'s stockholders have preliminarily voted to approve its acquisition by IBM, with both companies receiving an FTC request for additional information in connection with the merger review.
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 259.520
Low
210.00
Averages
315.80
High
375.00
Current: 259.520
Low
210.00
Averages
315.80
High
375.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: Despite strong earnings, IBM's stock fell approximately 4.8% during Thursday's trading session, reflecting market concerns over AI risks, particularly following Kyndryl Holdings' review of its accounting practices, leading to a cautious investor sentiment.
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide valuable insights for investors, helping to identify potential buying or selling opportunities to optimize investment decisions.
- ETF Trading Mechanism: ETFs trade like stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, reflecting changes in market interest in the ETF.
- Liquidity Monitoring: Weekly monitoring of changes in shares outstanding helps track notable inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, impacting the performance of individual components within the ETF.
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- Surge in Trading Volume: The trading volume reached 73.4 million shares, which is 61% above the three-month average of 45.6 million shares, indicating a significant increase in market interest in Palantir's stock despite the price decline.
- Strong Performance: Despite facing pressure, Palantir's fourth-quarter revenue increased by 70% year-over-year, with U.S. commercial revenue soaring by 137%, demonstrating robust demand for its AI platforms among enterprise and government clients, while management's guidance exceeded Wall Street expectations.
- Future Outlook: Recent upgrades from HSBC and Northland Securities highlight the potential for sustained growth, but the market's cautious stance on future returns suggests that Palantir's outlook will depend on whether its commercial momentum and margin expansion can justify its current high valuation.
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- Poor Stock Performance: The company's stock has declined approximately 45% over the past year and nearly 30% year-to-date, currently trading well below its 52-week high of $4.10, reflecting a prolonged downtrend that keeps traders cautious.
- Super Bowl Showcase: Datavault showcased its 'ADIO' data-over-sound and holographic technologies during Super Bowl LX in partnership with NFL Alumni, demonstrating immersive data transmission on one of the world's largest stages, enhancing brand visibility.
- IBM Collaboration Expansion: The company has expanded its collaboration with IBM to deploy enterprise-grade AI at the edge through its SanQtum AI platform, further strengthening its positioning in infrastructure-level AI solutions.
See More
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- Technological Advantage: IonQ's focus on trapped ion systems utilizes tiny lasers to trap ions in vacuum chambers, addressing the size and power consumption issues of traditional quantum computers, enabling operation at room temperature and enhancing market competitiveness.
- Low Error Rates: IonQ's trapped ion qubits exhibit consistency and predictability, achieving gate fidelity levels of up to 99.99%, significantly surpassing industry peers, which enhances computational accuracy and builds customer trust.
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is projected to grow at a CAGR of 34.8% from 2025 to 2032, positioning IonQ to capitalize on this growth with its innovative technology and product offerings.
- Revenue Expectations: Analysts expect IonQ's annual revenue to nearly triple from 2025 to 2028, reaching $317 million, and although its stock is currently valued at 38 times its projected 2027 sales, there remains substantial room for growth as the market expands.
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