IBM’s Software Growth Sped Up and Its Stock Barely Moved. I’d Start Buying.
Before International Business Machines (NYSE:IBM) posted third-quarter results on Oct. 21, I set a bar for buying the stock. I wanted software revenue growth back in the high single digits and recurring revenue rising close to 10%.
The software half of that test came through. IBM’s software segment reported 9% year-over-year revenue growth at constant currency (a measure that strips out exchange-rate moves). In the second quarter, it grew just 5%.
But shares barely budged on Thursday, the day after the report, closing up less than 1% after falling as much as 4% during the session. IBM stock closed at $252.11, which puts it about 23% under the $329.23 record close it set on June 2.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.