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International Business Machines Corporation (IBM)

  • Apr. 12, 2013, 9:32 AM
    IBM (IBM -1.1%) and Wipro (WIT -5.7%) join the list of stocks affected by Infosys' (INFY -17.7%) revenue miss and light FY14 (ends March '14) guidance. In addition to forecasting soft revenue, the Indian outsourcing giant says it expects its pricing and margins to be pressured over the near-term, though the company's deal pipeline is said to be slightly better than what it was a year ago. Is the weakness simply a result of macro and government budget issues, or are cloud services also taking a toll?
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  • Apr. 11, 2013, 12:10 PM
    IBM is following up on last year's acquisition of flash storage OEM Texas Memory by promising to invest $1B in flash storage R&D. Plans include the development of 12 "centers of flash competency," the inclusion of flash support in IBM's integrated PureSystems hardware, and the expansion of IBM's new (Texas Memory-based) FlashSystem storage line. The plans represent extra competition for EMC (XtremIO) and NetApp (NTAP - FlashRay), and could be both a positive and negative for OEM partner Fusion-io (FIO). (PR) (IBM's storage strategy)
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  • Apr. 10, 2013, 9:19 AM
    IBM +1.1% and NetApp (NTAP) -1.2% after UBS upgrades the former to Buy and downgrades the latter to Neutral. The firm argues IBM is well-positioned for the transition towards delivering IT solutions as services (ed: some companies are bigger fans of this than others), and also likes its ability to execute. Whereas UBS thinks that same transition could hurt NetApp due to a narrow product focus. NetApp has made efforts to embrace cloud infrastructure platforms such as Amazon Web Services, but such platforms still act as a threat to traditional storage sales. IBM's Q1 report is due on April 18.
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  • Mar. 26, 2013, 5:21 PM
    The fact Oracle's (ORCL) hardware product sales fell 23% Y/Y each of the last 2 quarters, and is expected to fall 13%-23% in this one, isn't stopping it from issuing a hype-filled PR to introduce its latest SPARC M5 and T5 servers. According to Oracle, the M5-32 is "up to 10x faster than previous generations," and the T5-8 offers "a 12x cost performance advantage" over IBM's Power 780 servers (Big Blue will undoubtedly differ). Though many of Oracle's engineered system lines (based on Intel Xeon CPUs) have shown decent growth, demand for SPARC systems (based on proprietary CPUs) has been nosediving.
  • Mar. 21, 2013, 11:39 AM
    Evercore and CLSA have downgraded Oracle (ORCL -8.8%) following its FQ3 miss and light top-line guidance. The numbers have many worried about the impact of cloud apps ... and not just on application software sales. "As customers move to the cloud, you get a lot of the functionality consolidated ... so you need less hardware and less databases and middleware," says Pac Crest. UBS is still bullish: "Historically when they have a miss it’s a great time to buy." Interestingly, cloud rivals are higher - WDAY +1.4%, CRM +0.4%, N +1.2% - even as other peers follow the tech sector lower. IBM -1.6%. INFA -1.6%. RHT -1.1%. (transcript)
  • Mar. 20, 2013, 4:44 PM
    Some enterprise IT names slump in response to Oracle's FQ3 miss, which included a surprising 2% Y/Y drop in new software license/cloud subscription revenue, and a 23% Y/Y drop in hardware product sales. InfiniBand hardware supplier Mellanox (MLNX) is the worst-hit, -7% AH. IBM -1%. HPQ -1%. EMC -1.2%. RHT -1.9%. VMW -1%. TIBX -1.2%. TDC -1%. Archrival SAP is unchanged for now.
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  • Mar. 16, 2013, 12:06 PM
    "A retailer (Amazon), an entertainment company (Netflix), an advertiser (Google), a résumé site (LinkedIn), and an address book (Facebook) have ended up shaping the future of [tech] infrastructure," writes a bemused Ashlee Vance. Unsatisfied with the solutions offered by the likes of IBM, HPQ, EMC, NTAP, and ORCL, Web giants have used home-grown hardware and open-source software projects to fulfill their needs. Their ideas and technology are already upending the server industry ... and their impact stands to grow as more companies buy in.
  • Mar. 15, 2013, 7:34 PM
    If history is a guide, the markets may be due for a pullback, according to S&P Capital's Sam Stovall. Since World War II, Stovall says the median advance once the S&P hits its previous high after recovering from a bear market has been just 3%. But despite the ominous warning, there still may be some places to ride it all out. JPMorgan's chief U.S. equities strategist Tom Lee recently came up with 15 stocks that outperformed the S&P 500 in eight of the last 11 pullbacks since 2009: CAG, IBM, DIS, GPC, MMM, FISV, PAYX, PPG, SYY, SIAL, UNP, UTX, PX, L, and XRAY.
  • Mar. 15, 2013, 6:37 PM
    IBM has recently eyed both Rackspace (RAX) and SoftLayer as buyout targets, a former IBM exec tells GigaOm. Meanwhile, EMC is said to be uninterested in SoftLayer - Reuters reported yesterday both EMC and IBM have been in talks to buy the company. Rackspace (unlike SoftLayer) is a major backer of the OpenStack cloud infrastructure platform, which IBM just threw its weight behind. The former exec notes IBM's historical preference to flesh out its product lines via M&A. "IBM does not want to fund its own development because past history shows we’re not very good at it."
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  • Mar. 15, 2013, 11:19 AM
    J.P. Morgan's Thomas Lee sees two distinctive style attributes that will help stocks outperform after the recent run-up: high free cash flow yields and - surprisingly - low dividend yields. Lee's screen produces 15 stocks investors can buy now: CAG, IBM, GPC, MMM, PAYX, UTX, SYY, PPG, PX, UNP, FISV, SIAL, XRAY, L, DIS.
  • Mar. 14, 2013, 5:42 PM
    IBM and EMC are among the companies in the running to buy Web hosting/cloud infrastructure provider SoftLayer Technologies in a deal that could sport a $2B+ price tag, Reuters reports. SoftLayer, locked in fierce competition with Rackspace (RAX) and Amazon, differentiates itself in part by offering hybrid solutions that feature both dedicated and virtual servers. The report comes as IBM targets $7B in 2015 cloud revenue, and EMC subsidiary VMware (VMW) launches a new cloud infrastructure service.
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  • Mar. 13, 2013, 2:41 PM
    Without much fanfare, IBM (IBM +0.6%) is making fresh all-time highs. Big Blue, which raised its analytics/big data sales forecast two weeks ago, currently trades at 12.6x 2013E EPS.
  • Mar. 10, 2013, 5:00 AM
    With companies looking to avoid paying taxes on their profits, 83 of the largest firms kept $1.46T overseas in 2012, up 14.4% from the previous year, Bloomberg calculates. GE (GE) again had the most with $108B held offshore, up from $102B in 2011; Pfizer was second with $73B, after which came Microsoft (MSFT), Merck (MRK), Johnson & Johnson (JNJ) and IBM (IBM).
  • Mar. 6, 2013, 2:24 PM
    "We are going to build our strategy on selling less storage and delivering more value. We'll make a storage consolidation play," says new IBM storage chief Ambuj Goyal. Central to this strategy is 2012 acquisition Butterfly Software, whose storage analysis/migration tools cut down on usage. IBM is also placing a big emphasis on controllers that allow consolidation projects and flash storage installations to happen without apps noticing. IBM's storage hardware ops have been bleeding share, and saw a 5% Y/Y sales drop in Q4. But storage software saw double-digit growth.
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  • Mar. 5, 2013, 6:28 PM
    Still looking to produce $7B in cloud-related sales in 2015, IBM is fully embracing the OpenStack cloud infrastructure platform: Big Blue says it will dedicate 500 developers to OpenStack projects, and says the platform will serve as the foundation of its SmartCloud management platform for private and public clouds. Naturally, IBM wants to package SmartCloud with its servers and storage. Rackspace (RAX), Red Hat, H-P, and many others are already backing OpenStack in an effort to provide an open-source alternative to Amazon, VMware, and Micorosoft.
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  • Feb. 28, 2013, 5:45 PM
    IBM roundup: 1) Following solid 2012 growth and an M&A binge, IBM expects to generate $20B in analytics/big data revenue in 2015, up from a prior forecast of $16B, says CEO Ginni Rometty. 2) Rometty also talks up IBM's emerging markets efforts: Big Blue is on track to double Chinese sales from 2010-2015, and grew its South American client base by 22% last year. 3) An NYT column looks at IBM's efforts to expand Watson's uses. Potential applications include drug development, predicting machine maintenance, and inventing recipes. IBM recently added Watson to a server line that starts at ~$6K.
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Company Description
International Business Machines Corp is an Information Technology (IT) company. It creates business value for clients and solves business problems through integrated solutions that leverage information technology & knowledge of business processes.