I work in the tech industry and I'm afraid the future doesn't look good for IBM.
The entire IT industry is changing rapidly and everyone in the enterprise IT space is getting hit hard. The competition is fierce and it's a race to the bottom due to the Cloud. IBM doesn't really have a moat beside mainframe. There are quite a lot of competitive players in analytic space like Watson as well. General consumer population doesn't hear about them because they aren't the marketing target for these products.
Don't get me wrong, I think IBM will be fine and be around for a long time but it can never get back to its former glory days. The main problem is due to industry shift and there isn't much IBM can do about it. IBM is kind of like Intel in personal computer space except IBM has tons more competitors and less moat. The industry shifting has just started accelerating and it's definitely not over yet. Personally, I would wait until things bottom out no matter how cheap the stock is because it can always go cheaper.
I don't understand why 15 consecutive quarters of lower revenue doesn't cause a red flag. It's like KMI all over again.
The entire IT industry is changing rapidly and everyone in the enterprise IT space is getting hit hard. The competition is fierce and it's a race to the bottom due to the Cloud. IBM doesn't really have a moat beside mainframe. There are quite a lot of competitive players in analytic space like Watson as well. General consumer population doesn't hear about them because they aren't the marketing target for these products.
Don't get me wrong, I think IBM will be fine and be around for a long time but it can never get back to its former glory days. The main problem is due to industry shift and there isn't much IBM can do about it. IBM is kind of like Intel in personal computer space except IBM has tons more competitors and less moat. The industry shifting has just started accelerating and it's definitely not over yet. Personally, I would wait until things bottom out no matter how cheap the stock is because it can always go cheaper.
I don't understand why 15 consecutive quarters of lower revenue doesn't cause a red flag. It's like KMI all over again.