2 Reasons to Buy IBM Stock, and 1 Reason to Sell
IBM (NYSE: IBM) just reported Q2 2022 earnings that topped expectations. The old computing technologist has a fresh look after parting ways with a big chunk of its legacy operations last year (the managed infrastructure company now known as Kyndryl (NYSE: KD)), and IBM's new focus on the hybrid cloud segment is paying off.
IBM has been a market-beating stock so far this year (down 2%, versus an 18% drop for the S&P 500 index) thanks to this revamped look, but at least one issue had the market feeling a little blue following the second-quarter update. Here's what happened.
1. The cloud has revenue soaring. IBM doesn't put up sizzling growth numbers like its cloud giant peers Amazon AWS or Microsoft Azure, but it certainly has a new lease on life after narrowing its tech proficiency. Q2 revenue was up 16% year-over-year to $15.5 billion (when excluding foreign currency exchange rates), blowing away the old IBM that just last year was doing great if it reported a mid-single-digit percentage growth rate.
Source Fool.com
