IBM's stock has hit a 5-year low
IBM
They are down about 6% on Wednesday.
At about $120, shares are at the lowest they've been for 5 years (except for a brief dip to $118 first thing this morning).
That's a low that hearkens back to October 2009, when IBM was crawling out of the post-2008 economic collapse.
Investors are put off by IBM's forecasted 2016 adjusted earnings per share of "at least" $13.50 - far below what the street was expecting to hear of about $15 per share.
And that's also far below the abandoned one-time goal of of $20 EPS by 2015. That goal was once called "Roadmap 2015" and IBM CEO Ginny Rometty officially ditched the plan in the third quarter of 2014 to concentrate on investing in new growth areas.
She's acquired nearly 40 companies during her three years at IBM to boost what she calls "strategic initiatives." These are the hot areas of cloud computing, analytics, mobile, social and security.
Those businesses are indeed growing. They generated $29 billion in 2015, and now represent 35 percent of IBM's total revenue, the company said.
But IBM's traditional businesses are shrinking faster than the new business can make up for, as IBM's customers shift away from buying hardware, software, and services - the old way of doing IT - and turn more to renting software and hardware via cloud computing.
IBM's total 2015 revenue was $81.7 billion, down nearly 12% form 2014's $92.8 billion, which includes a hit from foreign exchange and from the businesses IBM sold last year. Quarterly revenue has declined from the previous year for nearly every quarter in the last four years.
Many analysts are concerned that IBM has not yet hit rock bottom yet as it turns itself around. At least eight of them cut their price targets on the stock.
IBM shares 5 year
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market