The largest technology company globally, International Business Machines (IBM), reported strong earnings this week, leading to prices increasing.
The stock closed the last trading day at $143.55, up 3.90%. A total number of 11.9 million shares were traded, which is higher than the average volume of 6.71 million over the last three months. Throughout the trading session, the stock traded between $137.71 and $143.73. Earnings per share of the IBM stock were 6.26. IBM’s stock has gained 8.23% in the past five sessions while moving 9.96% in the past month but has gained 14.04% on a year-to-date basis. Besides, the stock was trading at an RSI of 73.27 during the past months, while its 50-day moving average was $128.17.
During the first quarter of this year, IBM sales increased by 1 % YoY to $ 17.7 billion, about 21 % for cloud computing revenues that totalled $ 6.5 billion. The IBM stock’s results exceeded Wall Street’s expectations. Profit fell 4 % to 1.77 per diluted share.
Revenue rose 57 % to $ 2.2 billion. IBM’s cash flow estimates for 2021 stayed at $ 11.5 billion.
IBM’s Kyndryl cloud platform will offer a hybrid cloud offering and artificial intelligence technology by the end of this year, which will enable cross-selling of a variety of value-added services.
In IBM’s estimation, cloud technology offers a good ROI. Every dollar spent on developing the cloud platform translates into $ 3-5 spent by customers on software and $ 6-8 spent on services. The separation of IBM’s sales and services divisions is expected to lead to strong revenue growth and positive cash flow.
Kyndryl, a company created as a stand-alone entity, will provide IT infrastructure management services. Kyndryl will eventually create a global IT services brand. Its headquarters will be located in New York.