Phil Gilbert Discusses Irresistible Change
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy IBM?
Source: Fool
- Key to Successful Change: Phil Gilbert emphasizes in his new book, Irresistible Change, that the success of organizational change hinges on emotional engagement and genuine cultural shifts rather than mere CEO mandates, highlighting the need for companies to focus on real employee feedback and involvement during transformation.
- Identifying Change Signals: Gilbert notes that investors should look for signs of authentic transformation rather than superficial compliance theater, as seen in the resistance to forced return-to-office mandates post-pandemic, which often indicate a higher risk of change failure.
- Metrics of Transformation: He stresses the importance of tracking employee engagement and customer satisfaction as key performance indicators that effectively reflect the true state of corporate culture, providing critical insights for investors' decision-making processes.
- Long-Term Value Creation: Gilbert argues that successful transformations not only enhance employee retention rates but also drive long-term value creation for companies, urging investors to focus on firms that demonstrate genuine commitment to change for better future returns.
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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: 236.340
Low
210.00
Averages
315.80
High
375.00
Current: 236.340
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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- Identifying Change Signals: Gilbert notes that investors should look for signs of authentic transformation rather than superficial compliance theater, as seen in the resistance to forced return-to-office mandates post-pandemic, which often indicate a higher risk of change failure.
- Metrics of Transformation: He stresses the importance of tracking employee engagement and customer satisfaction as key performance indicators that effectively reflect the true state of corporate culture, providing critical insights for investors' decision-making processes.
- Long-Term Value Creation: Gilbert argues that successful transformations not only enhance employee retention rates but also drive long-term value creation for companies, urging investors to focus on firms that demonstrate genuine commitment to change for better future returns.
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- SPAC Merger: Xanadu went public through a merger with the special purpose acquisition company Crane Harbor Acquisition, a method that provides a quicker financing route for quantum startups, reflecting growing market confidence in quantum technology.
- Industry Breakthroughs: Significant advancements in quantum computing over the past 18 months, including improvements in quantum error correction and increased qubit counts, lay the groundwork for commercial applications, with expectations for larger-scale quantum computing capabilities by the mid-2030s.
- Market Potential: The quantum computing market is estimated to be worth between $100 billion and $250 billion, attracting investments from tech giants like Alphabet and Microsoft, indicating a positive long-term outlook from investors in this sector.
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Market Impact of Iran Conflict: The ongoing Iran war has led to a correction in U.S. stock markets, with the Dow Jones Industrial Average experiencing its longest losing streak since May 2022, as investors grapple with the potential for a prolonged conflict and rising oil prices.
Cybersecurity Threats: U.S. companies, particularly in the tech sector, are facing increased cyberattacks linked to Iranian state-backed groups, which could disrupt operations and erode consumer trust, while also drawing attention to vulnerabilities in critical infrastructure.
Fertilizer Supply Concerns: The conflict has caused a significant rise in fertilizer prices and raised concerns about supply shortages for the upcoming planting season, potentially impacting crop yields and food prices globally.
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See More
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- Market Reaction Analysis: After the news, the Dow Jones surged over 800 points, while the S&P 500 and NASDAQ rose approximately 1.4% and 1.6%, respectively, indicating a positive market response to signs of de-escalation; however, analysts caution that the situation remains fragile and volatility may persist.
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- Long-Term Investment Perspective: Analysts emphasize that while oil price fluctuations may impact short-term investments, investors should focus on fundamentals and industry trends to navigate short-term market noise and ensure stable growth in their portfolios.
See More
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- Key to Successful Change: Phil Gilbert emphasizes in his new book, Irresistible Change, that the success of organizational change hinges on emotional engagement and genuine cultural shifts rather than mere CEO mandates, highlighting the need for companies to focus on real employee feedback and involvement during transformation.
- Identifying Change Signals: Gilbert notes that investors should look for signs of authentic transformation rather than superficial compliance theater, as seen in the resistance to forced return-to-office mandates post-pandemic, which often indicate a higher risk of change failure.
- Metrics of Transformation: He stresses the importance of tracking employee engagement and customer satisfaction as key performance indicators that effectively reflect the true state of corporate culture, providing critical insights for investors' decision-making processes.
- Long-Term Value Creation: Gilbert argues that successful transformations not only enhance employee retention rates but also drive long-term value creation for companies, urging investors to focus on firms that demonstrate genuine commitment to change for better future returns.
See More
AI-Driven Transformation in the Data Storage Industry
- Market Growth Potential: The enterprise storage market is projected to grow steadily, driven by digital transformation and rising data demands, with Seagate and IBM playing significant roles as key players attracting investor interest.
- Seagate's Technological Edge: Seagate's HAMR technology is driving a surge in high-capacity storage demand, with expectations of continued revenue and profit growth through 2026, while the launch of its Mozaic 4+ platform is set to enhance its competitive position in the market.
- IBM's AI Strategy: IBM's AI business has surpassed $12.5 billion, leveraging its consulting capabilities and technology platform, which is expected to drive future revenue growth, particularly in hybrid cloud and enterprise software, showcasing strong market adaptability.
- Investment Choice Analysis: Seagate and IBM each have distinct advantages, with the former appealing to investors seeking direct exposure to data infrastructure growth, while the latter suits those looking for stable and diversified revenues, reflecting different investment styles and risk preferences.
See More
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- Investor Psychology Impact: The author reflects on trading experiences from 42 years ago, emphasizing how fear can lead investors to make poor decisions during market volatility, resulting in many failing to profit in the stock market, highlighting the profound influence of psychological factors on investment behavior.
- Tech Stock Volatility: Although the author missed an opportunity to pay off credit card debt due to negative coverage in a market magazine, he notes that tech stocks can rebound strongly after short-term downturns, demonstrating the resilience and long-term growth potential of the tech sector.
- Importance of Quality Companies: The author stresses that successful investing hinges on selecting companies with strong moats and excellent products, rather than merely focusing on their classification as tech stocks, as this strategy helps maintain stable returns amid market turbulence.
- Market Sentiment and Decision-Making: In the current market environment, the author warns investors against hastily exiting due to short-term fluctuations, encouraging more rational reasons for investment decisions to avoid making impulsive sell-offs driven by fear.
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