U.S. Stock Market Drops $700 Billion as Netflix Acquires Warner Bros. for $82.7 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy IBM?
Source: Benzinga
- Market Downturn: U.S. stock markets experienced a significant decline today, with the S&P 500 and Nasdaq dropping 2.06% and 2.39% respectively, resulting in a loss of approximately $700 billion in market capitalization, driven by heightened risk-off sentiment due to President Trump's renewed tariff threats.
- Netflix Acquisition: Netflix has opted for an all-cash offer of $82.7 billion to acquire Warner Bros.' studio and streaming businesses, replacing a mixed cash-and-stock proposal, which received unanimous approval from Warner Bros.' board, thereby strengthening Netflix's position in the streaming market.
- IBM Stock Fluctuation: IBM's stock fell by 4.68% to $291.35, yet analysts remain optimistic about an 8% rally in the near future, reflecting positive sentiment ahead of its upcoming earnings report.
- United Airlines Strong Earnings: United Airlines reported record fourth-quarter revenue of $15.4 billion and a full-year diluted EPS increase of 8% to $10.20, despite a 4.34% drop in stock price, rebounding 3.46% in after-hours trading, indicating market confidence in its growth prospects.
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 315.80 USD with a low forecast of 210.00 USD and a high forecast of 375.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 289.050
Low
210.00
Averages
315.80
High
375.00
Current: 289.050
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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- Global RFP Announcement: IBM has launched a global request for proposals aimed at leveraging AI technology to support education and workforce development, inviting nonprofits and government organizations to collaborate in addressing the learning-employment gap, which is expected to enhance economic resilience.
- Skills Shortage Challenge: Research from the IBM Institute for Business Value indicates that 67% of executives believe job roles are becoming increasingly short-lived, with 57% anticipating that most current employee skills will be obsolete by 2030, a trend that forces workers to upskill rapidly, impacting labor market stability.
- Economic Loss Estimate: Pearson estimates that slow transitions between education and work cost the U.S. economy approximately $1.1 trillion annually, highlighting the urgency and necessity for educational institutions to adapt to market demands.
- Technology Support Program: The new cohort of the IBM Impact Accelerator will provide selected organizations with a two-year technology and implementation grant, including access to IBM's AI technologies and cloud services, aimed at fostering innovative solutions that effectively connect education to employment.
See More
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- Growing Market Demand: As more companies scramble to upgrade their AI infrastructure, the demand for data center REITs is expected to soar in the coming years, positioning Digital Realty as a leading player to capitalize on this trend and ensure long-term growth potential.
- Profitability Improvement: Digital Realty's core funds from operations (FFO) per share are projected to rise by 9%-10% in 2025, reaching $7.32 to $7.38 per share, which comfortably covers its forward dividend of $4.88 per share, demonstrating its stable profitability and appeal.
- Leasing Model Advantage: As a triple-net-lease data center REIT, Digital Realty's tenants are responsible for maintenance, insurance, and property taxes, which reduces operational risks and allows the company to focus on core business growth while maintaining high dividend payouts.
- Attractive Valuation for Investors: With a current stock price of $165 and a price-to-earnings ratio of 22, Digital Realty presents a relatively reasonable valuation compared to higher-growth AI stocks, making it an appealing choice for conservative investors seeking stable dividends.
See More
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- Attractive Dividend Yield: With a dividend yield of 2.9%, Digital Realty appears particularly appealing in the current interest rate environment, especially for conservative income-oriented investors, as its lower valuation offers a favorable alternative to higher-growth AI stocks.
- Rising Market Demand: As more companies scramble to upgrade their AI infrastructure, the demand for Digital Realty's AI-ready data centers is expected to soar in the coming years, driving long-term growth, even if its growth rate may not match that of Nvidia or Palantir.
See More
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- IonQ's Market Position: IonQ claims to be the largest pure-play company in quantum computing, highlighting its commercial lead over competitors D-Wave Quantum and Rigetti Computing.
- Revenue Growth: The company points to its rapidly increasing revenue, which is driven by contracts with significant customers, including the Defense Department.
See More
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- Global RFP Launch: IBM has announced a global request for proposals (RFP) aimed at leveraging artificial intelligence to drive education and workforce development, reflecting the company's strategic positioning in educational transformation and expected to attract participation from nonprofits and government organizations.
- Changing Educational Needs: According to IBM's report, 67% of executives believe job roles are becoming shorter-lived, with a significant portion of current employee skills expected to become obsolete by 2030, highlighting the urgent need for educational institutions to adapt to rapid changes.
- Earnings Anticipation: Investors are looking forward to IBM's upcoming earnings report on April 22, with an estimated EPS of $1.80 (up 12.5% YoY) and revenue expected to reach $15.60 billion (up 7.3% YoY), indicating the company's robust growth potential in the market.
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See More
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- Honeywell's Quantum Edge: Honeywell's subsidiary Quantinuum has made significant strides in quantum computing, holding a 54% stake, and combines robust hardware with software capabilities, which is expected to yield long-term benefits for shareholders.
- Intel's Quantum Strategy: Intel, valued at $243.6 billion, focuses on developing silicon spin qubits, leveraging its semiconductor manufacturing expertise, which positions it to potentially secure a significant role in the quantum computing landscape in the future.
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See More
