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IBM
Nov 30, 2023 21:36:31 GMT
Post by uncleharley on Nov 30, 2023 21:36:31 GMT
IBM closed out the month of Nov with a 10+% gain while paying a 4.25% annual dividend. I just thought someone would like to know.
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Post by bb2 on Dec 1, 2023 17:47:13 GMT
Read an interesting bit, "The Peculiar Case of IBM Strength at Market Tops", showing the phenomenon at 6 different tops. Basically, good div, low beta attracts nervous investors.
Rev declines stopped in 2020, at 54B, climbing to 60B in 2022. AI boost at work.
No business segment at IBM seems to be growing at anything > 10%/yr. Lots of 6-8 numbers. Consulting margin just under 10%.
Add an A, "AIBM" and you've got a run!
Half way through the call transcript and it looks like COBOL to JAVA translator means goodbye to COBOL. Actually, soon will be goodbye to programming as we all knew it.
I thought AI implementation would ramp up over time but it sort of feels like it's going to boom. IBM has 20k data and AI consultants. Says the revenue from generative AI is low hundreds of thousands of dollars but the interest they're seeing is huge, portending rise soon. (I still get stuck on consulting though - never has seemed to be a great business but what with all the AI hype, could easily boost stock prices despite the fact there's little profit in it.)
OK, edit: To be clear, a watch for me. I might lean to sell if I owned. Finished the call transcript and looks like IBM is doing what they do; low growth tech. I'll watch for a bit - thanks for the heads up.
Edit: I know how corporate management can be, clueless and buzzword driven. So after thinking about AI adoption a bit more, maybe it will be slower than the IBM call had me believing. Anytime an exec opens his/her mouth, watch out. They're good sales people. A secretary once took me into my boss's, boss's boss's office and lifted his keyboard, revealing a list of acronyms, none of which he knew anything about but would just throw them out almost randomly during phone calls. So she said. From what I've seen, it could be true. And so, decisions are made.
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IBM
Dec 15, 2023 19:09:15 GMT
anitya likes this
Post by kathiel on Dec 15, 2023 19:09:15 GMT
IBM has been doing AI for decades. Think about Watson, for instance. I own a nice amount, about 5% of my portfolio.
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Post by bb2 on Dec 28, 2023 17:54:33 GMT
One thing I heard but am not sure of, is that IBM AI consulting services can ofter provide data for whatever business they're dealing with. AI is dependent on data/training on good, relevant data, so IBM can provide not just the AI but the data and training too. You hear that the more data the better for good AI but I've read that's not true. You need a specialized dataset to train the AI for a specific task/area. You can imagine too much data, say the whole internet, will contain a lot of crap what will lessen the value of the trained AI product. If IBM has a lot of data specific to various industries, that would seem to be a consulting advantage.
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