IBM (IBM) stocks are under pressure after the third quarter revenue did not meet analysts’ expectations. Argus Research Research Director Jim Kelleher joins Julie Hyman And Josh Lipton to break down the results, the company’s place in the artificial intelligence game and the valuation of IBM shares.
“Revenues were a little light, and that was the instant reaction. It’s worth keeping in mind that this long-laggard stock is up about 42% year-to-date (and) its peer group is up considerably less,” says Kelleher.
The analyst says IBM could be an interesting way to play in the AI market. “They’re really figuring out the AI story… Generally speaking, I think their cloud strategy and their AI strategy is now kind of working.”
Kelleher notes that IBM stock has been “kind of a chronic underperformer over the years.” According to him, “the stock has been very depressed”, given its growth potential. He adds: “Profits have increased a bit (although), again, it’s a little disappointment on the turnover. But I think it’s fixable.”
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This article was written by Naomi Buchanan.