IBM Is America’s Worst Tech Company

Core Insights - IBM reported disappointing quarterly results with revenue increasing by only 9% to $16.3 billion, while earnings improved to $1.87 from a loss of $0.36, influenced by a prior year charge [1] - The operating (non-GAAP) pretax income from continuing operations was $3.0 billion, up from $2.5 billion in the same period last year [1] Financial Performance - The stock price of IBM fell nearly 7% following the earnings report [2] - The company entered a deal with Anthropic on October 7, allowing access to its Claude AI model, but the deal is considered modest compared to larger AI partnerships [2][3] Market Position - IBM's AI deal is significantly smaller than those of major tech companies, with OpenAI valued at $500 billion, while IBM's market cap is $267 billion [3] - Major players like Nvidia and Microsoft have market caps of $4.4 trillion and $3.7 trillion respectively, highlighting IBM's diminished role in the AI sector [3] Historical Context - IBM has lost its competitive edge over the years, failing to capitalize on opportunities in various tech sectors, including personal computers and AI [4] - The company's earnings are minor compared to market leaders, with Microsoft reporting revenue of $76.6 billion and net income of $27.2 billion in its latest quarter [5]