Whales with a lot of money to spend have taken a noticeably bearish stance on IBM.Looking at options history for IBM (NYSE:IBM) we detected 17 trades.If we consider the specifics of each trade, it is accurate to state that 23% of the investors opened trades with bullish expectations and 47% with bearish.From the overall spotted trades, 3 are puts, for a total amount of $157,610 and 14, calls, for a total amount of $1,074,391.Expected Price MovementsAnalyzing the Volume and Open Interest in these contracts, ...

​International Business Machines Corporation (NYSE:IBM) is one of the Best Cloud Stocks to Buy Now. On November 21, Param Singh from Oppenheimer initiated International Business Machines Corporation (NYSE:IBM) with a Buy rating and a $360 price target. Earlier on November 19, Amit Daryanani from Evercore ISI had also reiterated a Buy rating on the stock with a $315 price target. ​Singh from Oppenheimer noted that his bullish sentiment is based on the prediction that the company’s software portfolio can ac ...

Core Insights - Quantum computing is transitioning from a laboratory concept to a significant topic in corporate discussions, with IBM being a key player in this evolution [1] - IBM aims to achieve quantum advantage by 2026 and fault-tolerant quantum computing by 2029, leveraging its new Quantum Nighthawk processor [2] - The question arises whether IBM's scale and fabrication strategy provide a competitive edge worth investing in, or if the stock is already overvalued before commercialization efforts begin [3] Company Overview - IBM, founded in 1911, is one of the oldest technology companies globally, offering a wide range of enterprise hardware, software, and services [4] - The company's portfolio includes mainframe servers, enterprise software (such as Red Hat and WatsonX AI tools), and IT consulting, with operations in over 175 countries [4] Stock Performance - IBM's market capitalization is approximately $295 billion, and its stock has increased by about 41% year-to-date, significantly outperforming the S&P 500's 15% rise [5] - This stock rally is attributed to strong earnings and positive developments in quantum computing announced at a developer conference [5] Valuation Metrics - IBM's forward price-to-earnings (P/E) ratio is around 26x, and its enterprise value to EBITDA (EV/EBITDA) is near 25x, both above industry medians of approximately 24x and 11x, respectively [6] - The current valuation indicates that IBM is trading at moderate premiums compared to its peers, neither being classified as "cheap" nor "expensive" [6]

Core Viewpoint - IBM is planning to lay off thousands of employees as part of a strategic shift towards AI and software, highlighting a significant change in priorities within the tech industry [1][10]. Group 1: Layoff Details - IBM will cut at least several thousand jobs, affecting less than a single-digit percentage of its global workforce of approximately 270,000 employees, which translates to an estimated 2,700 to 24,300 positions [4][3]. - The layoffs are expected to primarily impact employees in the U.S. infrastructure department, with reports suggesting that this department may see a reduction of nearly 50% [10][4]. - Employees notified of "resource adjustments" will have 30 days to find new positions within the company before being laid off with severance pay [4]. Group 2: Strategic Shift - The layoffs are part of a broader strategic adjustment led by CEO Arvind Krishna, focusing on higher-margin areas such as software and cloud services, including the previously acquired Red Hat [10]. - IBM's software business has shown a 10% year-over-year revenue growth, although the growth rate for Red Hat has slowed, which may be a factor in the restructuring [10]. - The company is reallocating resources to areas with greater growth potential, such as software development and its generative AI platform, watsonx [10]. Group 3: Industry Context - IBM is not alone in this trend; since 2025, the U.S. tech industry has experienced a wave of layoffs as companies shift focus to AI and streamline operations [12]. - Other tech giants, such as Amazon and Meta, have also announced significant layoffs, with Amazon planning to cut 14,000 jobs and Meta reducing 600 positions in its AI department [12][14]. - Despite exceeding financial expectations, IBM's decision to proceed with layoffs underscores a broader industry movement towards operational efficiency and a focus on profitable AI and cloud computing sectors [14].

Core Insights - Deep-pocketed investors have adopted a bearish approach towards IBM, indicating potential significant market movements ahead [1] - The options activity for IBM is unusually high, with 37 extraordinary options activities recorded, showing a divided sentiment among investors [2] Options Activity - Among the notable options, 29% of investors are bullish while 48% are bearish, with a total of $424,822 in puts and $2,004,400 in calls [2] - The predicted price range for IBM over the last three months is between $150.0 and $390.0 [3] Volume & Open Interest - Analyzing volume and open interest is crucial for understanding liquidity and investor interest in IBM's options, particularly within the strike price range of $150.0 to $390.0 over the past 30 days [4] Current Position of IBM - IBM has an average target price of $273.4 based on recent analyst ratings, with various target prices ranging from $210 to $305 from different analysts [12][13] - The current trading volume for IBM is 2,531,732, with a price increase of 0.49% to $308.27, suggesting the stock may be approaching overbought conditions [15]

(Reuters) -IBM will cut roles this quarter, the company said on Tuesday, potentially impacting thousands of employees while it shifts focus towards its high-margin software segment, as Wall Street hones in on the company's ability to benefit from AI-linked cloud demand. "We routinely review our workforce ... and at times rebalance accordingly," the company said in a statement. "In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce." Under ...

Core Insights - IBM's third-quarter earnings report showed strong revenue and profit growth, yet the stock fell over 6% post-release due to market focus on a single metric [3][4][7] - The decline was primarily attributed to a slowdown in revenue growth for Red Hat, a key component of IBM's hybrid cloud strategy, which decelerated to 12% from 14% [6][8] - Despite the short-term market reaction, IBM's strategic partnership with Groq in AI technology presents a significant long-term opportunity [9][12][16] Financial Performance - Revenue reached $16.3 billion, a 9% year-over-year increase, surpassing consensus estimates [7] - Adjusted earnings per share (EPS) were $2.65, exceeding the analyst forecast of $2.44 [7] - Non-GAAP gross profit margin expanded by 1.2 percentage points to 58.7%, indicating improved profitability [7] - Management raised its full-year guidance, projecting over 5% revenue growth and approximately $14 billion in free cash flow [7][16] Strategic Developments - IBM announced a partnership with Groq, focusing on AI chip technology to enhance its enterprise AI offerings [9][10] - The collaboration aims to integrate Groq's Language Processing Units (LPUs) with IBM's Red Hat technology, enhancing speed and cost-efficiency in AI inference [12][13] - This strategic move positions IBM to address key challenges in deploying AI at scale, targeting high-value enterprise applications [11][14] Market Outlook - The market's reaction to IBM's earnings report may have created a valuation gap, as the sell-off was driven by a short-term concern rather than the company's long-term strategic initiatives [15][16] - Analysts have a 12-month stock price forecast of $288.00, indicating a potential downside of 6.60% from the current price [15] - The partnership with Groq is seen as a forward-looking strategy to capture the next wave of enterprise AI adoption, emphasizing speed and cost-efficiency [16]

Quantum Computing Sector - Quantum computing stocks are experiencing significant gains, with D-Wave up 14%, ION Q up 7%, and Regetti up 10% following a report that the Trump administration is considering equity stakes in quantum companies [1] - IBM has been a long-time player in the quantum computing space, although its shares fell 1.6% after initially dropping 6% due to a slowdown in its Red Hat hybrid cloud segment, not its quantum business [2][3] IBM's Performance - IBM's Red Hat segment saw a quarter-over-quarter decrease of approximately 2%, but CEO Arvin Krishna expressed confidence in a rebound, citing a 12% increase in the AI business to $9.4 billion [3] - Investors are beginning to recognize that the situation with IBM is not as dire as initially perceived, as the stock has recovered much of its losses [3] Market Sentiment and Economic Indicators - The market is currently optimistic, with a focus on upcoming earnings reports from major companies like Intel and Ford [5][6] - The Consumer Price Index (CPI) data, expected to show a year-over-year inflation rate of 3.1%, is anticipated to influence market sentiment, although it is considered old data [9][10] - There is a strong expectation of a rate cut by the Federal Reserve, with 99% odds for an announcement next Wednesday, which is reflected in increased call buying in small-cap stocks like the Russell 2000 [11][13]

Skip to Main Content Skip to Search This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. IBM Stock Falls. Why Strong Earnings Weren't Enough. By Tae Kim and Ben Levisohn Updated Oct 23, 2025, 2:05 pm EDT / Original Oct 22, 2025, 3:30 am EDT Share Resize Reprints Jefferies ana ...

Core Insights - IBM exceeded third-quarter expectations, driven by strong performance in its Infrastructure and Automation divisions, which offset a slowdown in key software segments like Red Hat [1][3]. Financial Performance - IBM raised its full-year financial guidance, indicating confidence in overcoming weaker-than-expected results from its cloud software business [2]. - The company reported a clean third-quarter, beating both revenue and earnings per share estimates, although performance across business segments was mixed [3]. - IBM's overall 2025 guidance was raised, projecting total revenue growth of more than 5%, an expansion in profit margins, and approximately $14 billion in free cash flow [4]. Segment Analysis - Stronger-than-expected results in the Automation and Infrastructure divisions helped offset weaker performance in Red Hat (Hybrid Cloud) and Transaction Processing software [3]. - The Consulting division's performance was better than expected, with a growing AI book of business anticipated to drive future growth for both the Consulting and Software segments [4]. Market Reaction - IBM shares are under downward pressure, trading lower by 1.17% to $284.16 at publication [5]. - BofA Securities analyst Wamsi Mohan maintained a Buy rating on IBM and increased the price target from $310 to $315 [2].