Businesses globally are looking to leverage blockchain technology to increase their efficiency. They are trying to incorporate this new technology into their operations to streamline their overall processes. Therefore, many techs and blockchain companies are seeing an increase in their popularity.
Many blockchain stocks have seen a rapid rise in their value. And one such company is IBM which is gradually making a name in the blockchain sector. International Business Machines Corporation (IBM) is not a new name for the people in the tech industry.
IBM is the oldest tech company worldwide and was founded by Charles Ranlett Flint in 1911. The company is known for its top-quality products and services in the following areas:
- Artificial intelligence
- Cloud computing
- Computer hardware
- Quantum computing
The company is one of the largest employers globally, with a workforce of more than 282,000 employees. Investors have been keen on having IBM in their portfolio since the company has always come up with revolutionary ideas. IBM is known for the inventions of:
- Automated teller machine (ATM)
- Dynamic random-access memory (DRAM)
- Floppy disk
- Hard disk drive
- Magnetic stripe card
- Relational database
- SQL programming language
- UPC barcode
- 1 IBM
- 1.1 IBM Statistical Overview
- 1.2 How to Invest in IBM Stocks?
- 1.3 Conclusion
IBM Statistical Overview
IBM Stock Forecast 2022
The IBM stock has remained volatile up till now, in 2022. While the share price was stable throughout the first couple of months, IBM stock plummeted from $126 to $134 at the start of March. Many experts have deemed the Russian-Ukrainian war as the reason for the fall in its value in the last couple of months.
However, other factors causing the share price to go down include the lockdown of the various cities in China. The new wave of the Coronavirus is sweeping through the country and many cities, including Shanghai, are in complete lockdown. Therefore, it is impacting the share values of companies globally.
Most importantly, the hawkish measures of the US Federal Reserve are also not helpful in regaining investors’ confidence. The interest rates are already at the highest level in the last 20 years to curb the growing inflationary pressure. As a result, the IBM stock has remained volatile throughout this year.
While all of these are external factors and don’t have to do much with the company’s policy, it is impacting the company’s overall policies. Investors should pay close attention to these factors to understand how the share value will play out in the coming months.
Wallet Investor’s algorithm calculates the IBM share price to go down to $123. They predict the price to fall to $113 by 2020 and to $116 by the end of the first quarter of 2020. On the other hand, the Gov Capital’s projections are the stock will close at $132 by the end of this year. It had a much more bearish outlook for the company’s share and predicted it could surge to $561 by the end of 2025.
IBM Stock 2021
IBM stock witnessed a gain of 6.2% in 2021. The prominent reason for its growth is the Kyndryl spin-off that caused the share price to jump from around $121 at the start of the year to $130 by the end of 2021. Investors showed their confidence in the company despite IBM seeing a fall in its revenue by 30%.
IBM’s completion of the Kyndryl spin-off in the first week of November helped its stock gain some value. The separation will enable IBM to utilize its resources for cloud computing and blockchain technology. Nevertheless, the shareholders failed to see IBM delivering on its promises for innovation.
Many investors were also not impressed since the company posted lower revenue and dividend yield for its shareholders. Despite all this, IBM’s stock price managed to go up and ended up at 6% higher than it was at the start of the year.
IBM Stock 2020
IBM’s stock suffered the same hit in 2020 as other companies in different sectors due to the global pandemic. The share was trading at $137 in February 2020, just before the world went into its first lockdown. As soon as the restrictions came into place by 2nd week of Mar 2020, its stock price went down to $94.
The recovery of the stock value was optimal since it reached $120 by the end of May as the governments globally eased the restrictions. Still, the stock lost its value by 6.5% by the end of 2020. A miscalculation in the earnings was the main reason shareholders lost confidence in the company’s stock.
IBM’s earnings, as per its headline pro forma number, were not even close to the GAAP (Generally Accepted Accounting Principles). In addition, the company’s revenue also saw a decline of 2.6%. Therefore, the share price sank to 6.5% in 2020.
IBM Stock 2019
The IBM stock price continued to fluctuate throughout the year 2019. Its stock price increased from $110 at the start of the year to $136 by the second week of April. At the beginning of the third quarter, IBM’s stock price fell to $122 and then increased to $143 by the third week of August.
The first rise in the share price was due to increased investors’ confidence that anticipated its price to go up. However, it went down after the earnings reported in the second quarter by IBM. The second surge in the price was due to IBM’s Red Hat acquisition.
The deal was finalized by July 2019, and IBM acquired the company for $34 billion. This deal made the investors believe that IBM’s stock value has the potential to grow in the next few years.
IBM Stock 2018
2018 was a stable year for IBM, but its share price suffered a significant drop of 26%. The low performance of the company’s stock in the last couple of years, plus the threat of a trade war in China, sent the IBM share tumbling down from its year-high value of $154 in the first few days of January to $113 by the end of December.
Furthermore, many analysts termed IBM’s overall earnings and profits as irreversible structural decline. Even though IBM announced it would be acquiring Red Hat (RHT), the investors were not too sure about the company’s growth in the coming years.
On top of that, Warren Buffet existed from IBM and announced that his company, Berkshire Hathaway, had no shares in IBM. Berkshire Hathaway started buying the IBM shares in 2011, but it ended up moving all of its investment to other companies, particularly Apple.
IBM Stock 2017
The IBM share continued to drop down for nine months consecutively in 2017. Its value decreased from $172 in the first few days of January to $136 by the second week of September. It gradually recovered and returned to the $145 mark by the last week of December.
The main reason was the constant fall in revenue and sales. It completed its streak of 22 quarters with a decline in revenue. As a result, the shareholders continued to lose faith in the company’s overall strategy and how it would bounce back from this loss.
Moreover, the market followed the pattern of Warren Buffet, who started selling his shares in IBM. Investors weren’t confident enough to buy shares that a big name like Buffet was selling. Therefore, these factors led to the stock price of IBM going down significantly throughout 2017.
While there were some pros of investing in IBM, such as great resistance in recessions and lower valuation, many investors were not keen on putting their money into it. Ultimately, the IBM share price continued to see a fall in the early weeks of 2018.
IBM Stock 2016
IBM’s overall share performance was optimal in 2016 compared to previous years. The company’s share value saw an increase in its value from $116 in the initial days of January 2016 to $160 by the end of December. The reason for the growth was its fantastic patent strategy that set the company to be the first to hold more than 7,000 patents.
However, one concerning factor for shareholders was the company’s growth in recent years. The year-over-year net income declined from $2.962 billion to $2.854 billion. Moreover, the company’s revenues were on par with the previous year.
The company also did not manage its debt properly, and it was barely able to keep its cash flow stable. Investors buying shares were focusing more on value rather than financials. IBM had an impressive dividend yield and was the main factor many investors purchased its shares.
How to Invest in IBM Stocks?
Investing in an IBM corporation is no hectic task for professional or beginner investors. A crucial thing to keep in mind before investing in any stock is that you have complete knowledge about the company’s financials and how it aims to progress in the future. You will have to do extensive research, comparative analysis, quantitative analysis, etc., to know if it is the best share for you or not.
Blockchain technology is now becoming the face of reality. Companies globally leverage this new technology to streamline their process and get a competitive edge over others. Therefore, investing in tech stocks can be beneficial for you in the long run. You can enjoy good returns on your investments while earning dividends to increase your passive income.
Additionally, the IBM common stock is great for diversifying your portfolio and mitigating the risk. Analyzing the IBM stock forecast can help you buy the dip and sell it when the share price increases. It is one of the best ways to enjoy exceptional returns in a short span.
All of this requires you to have an online broker like eToro by your side to invest in IBM shares easily. The registration process is simple and easy for anyone to start investing in the companies they want. It is an optimal platform for beginners and professional investors. Below is an overview of the simple registration process to access the eToro platform.
Step 1: Open an eToro Account
Firstly, you need to click on the option of account creation to open an application form online. You need to fill in all the information and submit it. There are no extensive details that you need to fill in the application, and it will only take a matter of minutes.
Step 2: Upload ID
The next step for the registration of your account is uploading ID documents. It is vital to submit your documents to meet the KYC and AML regulations. This step helps keep your data safe and protects you from identity theft.
The eToro platform will check and verify your account. Once everything is complete, it will authorize your account for trading purposes. There is not a long list of documents you need to submit since the platform only requires your bank account statement for the past six months, driver’s license/valid passport (either one), and a copy of the last paid utility bill.
Step 3: Make a Deposit
Once your account is open, you might want to start buying shares of IBM corporation or any other company. For that reason, you would need to deposit money into your account. You can decide the amount you want to invest in the stock market and then deposit your PayPal account, wire bank transfer, or debit/credit card.
Step 4: Search for Stock
After depositing the money in your account, you can start buying the shares of any company you want. You can use the search bar option to look up the IBM corporation stock and buy it. If there is any other company you want to invest in, the search allows you to find it.
The best thing about eToro is that you can learn different things from this platform through its educational material. It can assist beginner investors in learning about the changing stock market trends and how they can know about the right time to invest.
The stop-loss option is also helpful in ensuring you don’t lose all of your investments at once. You can set a limit for the platform to buy or sell any stock item. It will initiate the trade only after the stock reaches the limit.
Nevertheless, the company is looking to progress in different avenues, including blockchain technology and cloud computing. We can expect to see something out of the box, and it can cause the share price to go up soon.