- October 16, 2018
- Posted by: admin
- Category: Uncategorized
Wall Street Is Valuing IBM- Wall Street should begin to pay more attention to IBM’s emerging business and less in its mature business.
Wall Street values IBM as a technology company in the mature hardware business, characterized by sluggish sales and price and profit erosion.
That’s why it has shunned the company’s stock, which has underperformed the overall market in recent years.
While IBM was primarily in the mature technology business a decade ago, it isn’t these days. Thanks to several strategic initiatives, IBM’s old mature business counts for less than 50% of its overall sales. The remainder is coming from fast growing emerging technology segments.
Like cloud and Internet security.
In the 2Q, IBM’s revenue from strategic initiatives was up 15%, and accelerated to 13% at constant currency. Revenue performance in 2Q was led by security and cloud. Security revenue was up about 80% in 2Q – driven by growth in integrated software and services business. Cloud revenue was up 20%, or 18% at constant currency, driven by Software as-a-Service (SaaS) offerings.
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