IBM Shares Dip After Six Gains; Analysts Divided on Tech Giant's Prospects
IBM (NYSE:IBM) shares experienced a mixed week, closing 1.5% lower on Wednesday after six consecutive gains. Despite this, analysts remain divided on the tech giant's prospects, with eight rating it a Buy and above, while three consider it a Sell and lower.
IBM's stock performance has been robust recently, gaining over 4% in the past six sessions, outpacing the broader stock market's 0.39% rise. However, the company's shares snapped this streak on Wednesday, closing 1.5% lower at $289.46.
Analysts at Seeking Alpha have offered differing opinions on IBM's stock. While some, like Daniel Jones, have downgraded their rating from Buy to Hold, others remain bullish, issuing Buy calls. The platform's Quant rating currently stands at a Hold with a score of 3.42 out of 5, reflecting this divide. Notably, no analysts have rated IBM's stock as Sell or lower, according to available data.
IBM has been active in strategic partnerships. It is collaborating with Anthropic to integrate the startup's AI model Claude into select internal and external development tools and enterprise products. Additionally, IBM and S&P Global are partnering to embed IBM's watsonx Orchestrate into S&P Global's offerings, starting with supply chain management.
IBM's stock has shown significant gains this year, rising over 33% compared to the S&P 500 Index's 14.16% increase. Despite Wednesday's dip, the company's shares have been on an upward trajectory. IBM's Quant ratings indicate strong profitability (A+) but weaker growth (F) and momentum (B-). As analysts continue to debate IBM's prospects, investors will closely watch the company's future performance and partnerships.