Where Will IBM Be in 5 Years?
IBM's (NYSE: IBM) stock has declined about 16% over the past five years, woefully underperforming the S&P 500's 75% gain. Even after factoring in reinvested dividends, IBM's stock only delivered a total return of 3%.
Let's evaluate Big Blue's mistakes and its turnaround strategies, and see if it can finally generate stronger returns over the next five years.
Many of IBM's current problems started under Sam Palmisano, who served as the tech giant's eighth CEO from 2002 to 2012. IBM bought PwC's consulting business in 2002, sold its PC business to Lenovo (OTC: LNVGY) in 2005, and relied heavily on cost-cutting measures and buybacks to boost its earnings.
Source Fool.com
