Who else is bullish on IBM into earning tonight? I know very little about their financials, but I do know that sentiment is very negative on $IBM. So I think the reward:risk is in favor of being long right here.
Would love to hear what others think…
Grab Buffett’s coat tails - why think too much? He has been wrong for 5 years, and he has never been wrong when he made an outsized bet like this. So he will probably be proven right.
If I think independently, I am not sure what the IBM brand stands for anymore. Not proprietary hardware or systems anymore. They keep divesting their traditional businesses to get into new ones, supposedly higher-margin. Not clear what gives them an advantage there.
Financials are OK-ish but getting shakier by the quarter.
I’m pretty skeptical about the company, I’m personally long AMZN and MSFT, and I don’t think IBM is all that strong. But I guess, for Buffett, it does not need to be, he is investing in IBM through a leveraged vehicle, and as a result can get away with an “okay” return on the stock…
well I was wrong on IBM
MSFT trading down after hours on earnings report
And lets see which way AMZN gaps this time!