An article on Fool compared International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT) over the years and made some recommendations based on the revenues, earnings and overall growth. International Business Machines Corp. (NYSE:IBM) is suffering a major slump since years. The company came down by 14.3% in one year. Overall sales, international business and other areas are suffering. Software revenue came down by 7% to $7.6 billion. International technology revenue is also suffering. A global depletion in software sector is the primary reason given by International Business Machines Corp. (NYSE:IBM) for these results.
Microsoft Corporation (NASDAQ:MSFT) on the other hand is sustaining a sound revenue. It reported a $26.5 billion revenue last quarter with a 9% year over year increase. The source said that Microsoft Corporation (NASDAQ:MSFT)’s Xbox, Windows, mobile sales are contributing heavily in this part. Windows Pro sales are suffering because of the fact that the company is loosening up its policies for the corporate sector and many licenses were sold in low prices for the OEMs.
Microsoft Corporation (NASDAQ:MSFT) and International Business Machines Corp. (NYSE:IBM) are taking Cloud as their main focus of futuristic endeavors. The source said that the tumble of International Business Machines Corp. (NYSE:IBM) can be connected to a promise that was made by the company CEO back in 2007, when he promised to make the EPS around $20. For this, International Business Machines Corp. (NYSE:IBM) divested and made buy back, which depleted the revenue growth.
The source said that Microsoft Corporation (NASDAQ:MSFT) clearly beats International Business Machines Corp. (NYSE:IBM) in the overall revenue growth but both companies are suffering in the bottom line revenues.
Warren Buffett’s Berkshire Hathaway hold around 70 million International Business Machines Corp. (NYSE:IBM) shares.
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