"International Business Machines Corp. ( NYSE: IBM) was America's great tech company before Apple, Microsoft, or Alphabet. Its brand was famous. IBM topped lists of America's most admired companies. However, it recently announced layoffs as part of its push into the artificial intelligence (AI) future, which is the future of the tech world. The company has almost no position in that sector now, and never will."
"Its most recent earnings were disappointing. Revenue rose only 9% to $16.3 billion. Earnings rose to $1.87 per share from ($0.36), but this was offset by a charge in the year-ago quarter that affected earnings. Yet, a more accurate way to view the numbers is by operating (non-GAAP) pretax income from continuing operations. That was $3.0 billion, up from $2.5 billion in the same period last year."
IBM announced layoffs tied to a push toward artificial intelligence and a stated move into software, while asserting workforce levels would remain current. The company currently holds almost no position in AI and faces dominant partnerships among AI leaders that include OpenAI and Nvidia. IBM lost clout over decades by missing leadership opportunities in personal computers, PC operating systems, e-commerce, tech operating systems, search, and AI. Recent revenue rose 9% to $16.3 billion and reported earnings improved to $1.87 per share, with operating non-GAAP pretax income rising to $3.0 billion from $2.5 billion.
Read at 24/7 Wall St.
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