International Business Machines Corp. (NYSE:IBM) is going through a tough time. In 2013, when almost every tech companies flourished on the Dow, IBM was the only company to end the year in the red line, down by 2%. Last year, International Business Machines Corp. (NYSE:IBM) plummeted by no less than 15%. An article on CNBC said that International Business Machines Corp. (NYSE:IBM) management is trying hard to convince the investors that the company has all its plans in the pipeline to come out of the difficult times. International Business Machines Corp. (NYSE:IBM) is planning to pour nearly $4 billion in high-tech areas, security, Cloud, analytics and mobile. This would, according to International Business Machines Corp. (NYSE:IBM), inflate the revenues by 40% by 2018, which makes up to $40 billion.
International Business Machines Corp. (NYSE:IBM) cloud business generate around $7 billion last year, but the other areas couldn’t even make $35 billion combined. International Business Machines Corp. (NYSE:IBM)’s judgment may seem a far-fetched idea for many investors but the source said that with clear strategy and some interesting product based approach, International Business Machines Corp. (NYSE:IBM) can easily get back in business.
Investors who are bullish on International Business Machines Corp. (NYSE:IBM) argue that IBM has cheap stock price and a well-devised strategy with it and that is the reason why the chip maker can be a good option for the investors. International Business Machines Corp. (NYSE:IBM)’s Cloud business is growing with 60% per year pace.
One of the IBM’s stakeholder is Warren Buffett, the stocks goliath. This shows the potential of International Business Machines Corp. (NYSE:IBM) and the hope that it could make it back in business within a very less time.
Warren Buffett’s Berkshire Hathaway hold around 70 million International Business Machines Corp. (NYSE:IBM) shares.
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