Better Buy: IBM or Kyndryl?
Technology giant International Business Machines (NYSE: IBM) recently completed a long-awaited spinoff, setting Kyndryl Holdings (NYSE: KD) apart as a separate business and independently traded stock. IBM shareholders, including Yours Truly, received 1 Kyndryl share per 5 shares of IBM in the process.
So now I'm both an IBM investor and a Kyndryl shareholder. Should I hold on to both of them, or is it time to sell one and reinvest that cash in the other? And then we have investors who didn't own any IBM stock on Nov. 4 2021, asking a different question -- which slice of the former IBM entity is the better place to park new money?
Kyndryl was created in late October when IBM followed through on a spinoff plan that was first announced more than a year earlier. The original idea was to detach the company's managed infrastructure services from IBM's cloud computing ambitions. At arm's length from Big Blue's cloud-based services and artificial intelligence (AI) tools, the new company would be a sensible service provider regardless of which brand name appears on the client's servers and cloud computing contracts.
Source Fool.com
