ETFs in Focus as IBM Reports Mixed Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2024
0mins
Source: NASDAQ.COM
IBM's Q3 2024 Results: IBM reported mixed results for the third quarter of 2024, beating earnings estimates with $2.30 per share but falling short on revenue at $14.97 billion, leading to a decline in its stock price by over 8% in after-hours trading.
Focus on AI and ETFs: The company is expanding its artificial intelligence capabilities, with generative AI bookings reaching $3 billion. Several ETFs heavily invested in IBM, such as First Trust NASDAQ Technology Dividend Index Fund and FT Vest Technology Dividend Target Income ETF, are highlighted due to their significant allocations to the tech giant.
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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: 250.690
Low
210.00
Averages
315.80
High
375.00
Current: 250.690
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: The video published on May 23, 2026, highlights market attention on IBM's revenue growth, potentially attracting more investors to focus on the company's future developments.
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See More
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See More
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- Significant Gains for IBM: International Business Machines (IBM) is set to receive $1 billion to build a quantum chip foundry in Albany, New York, matching that with another billion of its own, bringing the total project cost to nearly $2 billion, reflecting its long-term commitment to quantum computing.
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- Risks and Opportunities: While the government's funding commitment could bring long-term growth potential to the quantum computing industry, significant risks remain, and investors should tread carefully, especially since these funding agreements are still in the proposal stage.
See More
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- Funding Scale: The U.S. Commerce Department signed letters of intent to provide approximately $2 billion to nine quantum companies, with IBM set to receive $1 billion for a new quantum chip foundry, indicating strong government backing for the quantum computing sector.
- Market Reaction: Following the announcement, IBM's stock surged about 12%, while smaller quantum firms like D-Wave Quantum, Rigetti Computing, and Infleqtion saw their shares rise over 30%, reflecting investor optimism about the future of quantum technology.
- Quantum Technology Outlook: IBM plans to match the government funding with an additional $1 billion investment to advance its quantum chip foundry in Albany, New York, which is expected to accelerate its long-term strategic roadmap in quantum computing.
- Risks and Opportunities: Despite the significant stock price increases, the financial performance of quantum companies remains weak, with D-Wave reporting only $2.9 million in revenue for Q1, highlighting the high-risk nature of these investments and the need for cautious evaluation of potential returns versus risks.
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