Once considered a legacy technology firm, IBM posted strong results last night. Revenue grew by 4%, helped by its artificial intelligence products and services. Hybrid cloud offerings are also a contributor to free cash flow strength.
IBM earned $3.87 a share, sailing past Wall Street’s estimate of $3.76. For the year 2024, FCF will top $12 billion, compared to $11.2 billion in 2023. IBM expects revenue will rise in the mid-single-digit percentage.
Investors who do not want to pay for the risk of over-valuation in AMD, Nvidia (NVDA), and Marvell Technology (MRVL) should watch IBM today.
Beware of These Stocks
AT&T (T) is one of the stocks to beware of today. The company posted weak quarterly results. Automotive firm Ford Motor (F) formed a downtrend since shares peaked last month in December 2023. F stock risks breaking below $11.00 today.
In the bond market, renewed rumors that the Fed would cut interest rates in its March meeting might stop the downtrend in the 20+ Year Treasury Bond ETF (TLT). TLT stock closed at $93.35.
Fallen favorite BlackBerry (BB) plunged by 17% yesterday. The firm announced on Tuesday that it intends to offer $160 million in convertible senior notes due in 2029. When the company gives details on the offering, expect unfavorable terms, such as a 6% interest rate with a convertible price of $4.50.
