IBM Stock Slides Despite Q1 Earnings Beat: Time to Buy Its ETFs?

Group 1: Company Performance - IBM reported better-than-expected first-quarter 2025 results, with earnings per share at $1.60, surpassing the Zacks Consensus Estimate of $1.42, but declining from $1.68 year-over-year [1][3] - Revenues grew 2% year-over-year to $14.54 billion, exceeding the consensus estimate of $14.46 billion [1][3] - Software revenues increased by 7% to $6.34 billion, while Consulting revenues fell by 2% to $5.07 billion [4] Group 2: AI Business Growth - IBM's generative AI business grew by almost $1 billion in the first quarter, reaching over $6 billion, indicating strong client interest in AI solutions [4] Group 3: Future Outlook - IBM issued a second-quarter revenue forecast of $16.40-$16.75 billion, with the Zacks Consensus Estimate at $16.35 billion, and reaffirmed its goal of at least 5% revenue growth in 2025 on a constant currency basis [5] Group 4: Market Reaction - Despite strong results, IBM's stock declined by 7% in after-market hours due to the cancellation of 15 federal contracts by the U.S. government's Department of Government Efficiency, totaling approximately $100 million [1][6] Group 5: Investment Opportunities - Investors can consider ETFs with high allocations to IBM, including First Trust NASDAQ Technology Dividend Index Fund (TDIV), FT Vest Technology Dividend Target Income ETF (TDVI), AXS Green Alpha ETF (NXTE), SPDR Portfolio S&P Sector Neutral Dividend ETF (SPDG), and Pacer US Cash Cows Growth ETF (BUL) [2]