IBM

whodidntante

Hopefully it ends better than the Microsoft IBM partnership. \*Pours one out for OS/2\*

MagicManTX84

No IBM has acquired so many companies you have no idea. Most are rolled into other business units, or dead now. Sterling Commerce, Red Hat, Candle, the Weather Channel, Savvion, and their analytics tech. When big tech can no longer innovate because the finance people own and run the company (and stifle innovation through cost cutting moves), then they go on a buying spree. When I was starting my career in 1986, IBM was still innovating with technologies like relational databases (DB2), and even PC operating systems (OS/2).

Imaginary_Manner_556

IBM already got broken up by all the other companies you mention

Coz131

IBM is a shell of it's former self. Cloud providers are inherently oligopolistic due to their economics of scale. As long as there are enough competitors, it is ok. What they should not be allowed to do is to embrace, extend, and extinguish or to abuse their market powers in other ways. Basically preventing major consolidation should be one of the primary goal.

MagicManTX84

They need to breakup all the big tech. Oracle, IBM, Meta, Alphabet, Amazon, Salesforce, Microsoft, all of it. No company should have more than 15% of a given market. There would be so much more innovation and market growth. No tech is just another Oligarchy.

Fun_Coyote_2402

NSA codebreaker and hired by IBM to break Data Encryption Standard... I think it's more likely he used math to find secrets

SDirickson

"For clarification, are you indicating that after the delta goes to about 1 and the 1st dollar is achieved, the gains for both the shorted stock and the long put start becoming about the same? Seems legit." Yeah, that's the definition of delta: the percentage of a move in the underlying that shows up in the option price change. A deep-ITM option will have a larger delta than an ATM option, and will thus move closer to 1:1 with the underlying. Of course, going deep IBM increases the option price, so you lose some of the leverage multiplier vs. just shorting the underlying directly.

Inflatable-yacht

IBM

EnigmaOfOz

If it turns out all AI can do for the economy is be a poor substitute for customer service workers and create weird pictures of Jesus, what then? What is the next tech hype? IBM were making claims over a decade ago they could improve medical diagnosis and even provide tax and legal advice using AI. Self-Driving car were ‘just around the corner’. But where are all these solutions now? I know there are some applications being deployed in some sectors but this isn’t exactly what was promised either. There seems to be a last mile problem with all this tech. It looks impressive at first but is haunted by limitations.

Chornobyl_Explorer

Nokia dominated the mobile market so hard they had more sales alone the Apple, Samsung and Blackberry combined for well over a decade. They had more marketshare then any of them could *ever dream of*. Where are they now? Cisco litterary built the Internet and without them we'd not be online. To this day they're a backbone of the world wide Web, was if a good investment? Kodak had such grasp of the worlds photography buisness they caused a *global silver shortage* simply by developing films. Are they still a good bet? Enron was a darling forever stock that everyone and their mom knew was safer then Foetn Knox and has solid returns. What happened? Apple went atmospheric in the early 90s yet was facing bankruptcy. Hadn't they been bailed out by a good samarithan called Jill Gates they'd been delisted before the 2000s. Is that a sucess story? No, no, no. There is *no such thing as a forever stock/safe bet*. Every company will, eventually turn bad and become either a zombie or delist. All the companies you think are "safe" today are the same as your parents invested in and ended up bagholding as *times changed*. IBM, Sears, Intel, Nokia, Enron...the list goes on.

otaku_wanna_bee

It's important not to take too much risk. It's wise not to invest heavily on the tech companies even though they perform well. Many people are lucky that the magnificent 7 performed so well. But Microsoft, Apple, Google, and other companies can follow the same path as Cisco, IBM, and HP took after the dot com crash.

Kemilio

Ehh, yes and no. Quantum computing, like binary computing, will consist of many different parts including software and hardware. [IBM is leading in the computer as a whole, Intel is leading in terms of quantum processors and Google is leading in term of software and AI integration](https://www.securities.io/companies-in-quantum-computing/). So each will bring something to the table. Also, tech like QC won’t benefit just one company anyway even in these categories. Look at all the companies that rode the coattail of NVDA. It’s not a gamble in the sense of winner take all.

Abby941

Google hasn't been affected for now, but if they don't react fast properly innovate their services to the new era of consumer AI, they will feel the effects in the future. Microsoft under Steve Ballmer made the same mistake when the iPhone first came out and it made them appear like IBM for several years until Sataya took over.

Oatmeal_Raisin_

Quantum computing wont generate much income for years and years. That is probably a 2030+ investment. If you are interested in IBM, then you should be paying close attention to its more recent cloud infrastructure investments/acquisitions

CapitalPrefer

Buy IBM at this pull back, you can thank yourself later! IBM Quantum Computing is the real AI, ServiceNow and SAP Know it, they will all start to team up with IBM. If they want to Be part of the Real Artificial Intelligence Future.

CommanderZuck

IBM actual pos wtf

-_Helios_-

is Intel the new IBM ?

Squrtfrz

IBM 

thelegendofthefalls

I am a little worried about this, and the possible underlying disconnect they have with the community. I’m a fan boy for life, but this move / communication feels so out of touch and insensitive to the realities of what people are feeling about AI right now. Seems so unlike Apple, or maybe not? It’s a long way from their attack on Big Brother IBM. Now they are BB? https://www.businessinsider.com/apple-ipad-pro-ad-crush-tim-cook-ratioed-2024-5

Squrtfrz

You ever just spend 3 grand on IBM calls and then it just drops 1% after hours for no reason 😅

greenpride32

MSFT and AMZN have cloud businesses, Azure and AWS respectively, that other Fortune 100/500/2000 companies and goverments depend on as critical infrastructure. Let's say crypto or AI really take off, then these cloud businesses will only grow further. These cloud businesses are highly scalable and high margin. GOOGL/ORCL/HPE/IBM have tried to gain market share with little success. When all the of the world's other successful companies rely on your services to continue and grow their success, you have something special.

Rymasq

they are in the late tech behemoth stage. Similar to Oracle/IBM/Microsoft in the 00s. Too big to fail and disappear but clearly lacking that spark, and therefore on autopilot.

ErasableInk

Except no one knows what exactly IBM does.

reddit-abcde

It may become IBM? IBM hasn't died

anothercountrymouse

Oracle Alibaba IBM maybe?

reFridgeRatorRaiderG

IBM maybe coming back soon

ollaa

Apple has entered it's IBM stage. It's an old out of touch relic of the past desperately trying to cling onto the cutting edge. They should just accept they're a phone company and make the best phone they can and stop wasting shareholder money on dumbass pursuits like EV, VR or AI.

Xtianus21

The stock runs at a super high premium for something you can do natively with AWS, Azure, IBM, and Google. He says there's no competition which is patently absurd. Next, they don't have anything proprietary. They are riding the generative AI hype train with nothing of their own only the usage of others peoples Open Source models. Why this isn't viewed as a run of the mill consultancy is beyond me. Krispy Kreme and Wingstop makes more sense to me

lost_man_wants_soda

Eventually we all become a little IBM

parsley_lover

Do you think Google will become another IBM?

ScottNewman

What the hell kind of cherrypicked data is that? [IBM conntinued to fall to the end of May, bottoming out at 11.38 per share](https://finance.yahoo.com/quote/IBM/history?period1=-252345600&period2=14956956) [As far as I am concerned, this was correlated to the anticipated release of the film *Pufnstuf*](https://en.wikipedia.org/wiki/Pufnstuf_(film))

No-Fig-8614

I think it’ll drop a bit then stabilize then wait for the first earnings call to see what the new management is going to do. I imagine he can quickly make splashes by spending some of their massive cash pile. It just depends on how conservative or opportunistic he will be. For instance he may be more intune with tech stock which Warren has said he isn’t and doesn’t plan invest much in that sector even though it’s the future. They just need to find solid companies that meet their criteria that is a company that is very undervalued for how their balance sheet looks and performance looks. I hope they get into the tech world. IBM was one of warrens regrets but IBM was a stupid choice in the first place. IBM, SAP, Oracle only grow via acquisitions. Which is a strategy I don’t think Warren believes in and hopefully the new guy doesn’t either. Have to find the company who is fundamentally strong but undervalued. Also at the same token I don’t want them to lose their initial strategy of solid core industries. I do question warrens love for occidental….

BlazinHotNachoCheese

NVIDIA has a huge moat. It's more like incompetent-wishin. Everybody is trying to talk Nvidia down so that the can buy more shares. Ain't nobody any close and just like in the old days when everyone was buy IBM junk and saying "nobody ever got fired for buying IBM," who the fuck is going to buy anything else than NVIDIA for the nest 2 years? Just fucking go to your board, give them a budget for AI and warn them that a lack of investment in AI may mean a major loss of market share. This is like Y2K all over again. All the douche bag executive teams that don't know shit about tech are going to loosen the purse strings because they think "what the fuck is a neural net and large language model?"

No-Fig-8614

Palantir is probably the most stable bet. They are the first company to really use AI and Graph data in a meaningful way. They also have stable contracts with the government and a lot of fortune 100. Most of the good ones are startups/private. All the specialized hardware startups will be bought out, the softwsre ones are already extremely valuable (OpenAI, Anthropic, huggingface). You have a lot of the semi legacy companies like salesforce and snwoflake baked into their pricing. Then you have the ultra legacy like IBM who secretly has a lot of ai patents and software but hidden behind an old name. Then you have the cloud juggernauts like Microsoft, AWS, and Google priced in….. then you have the hardware provides like hpe, super micro, dell already pumping out server racks for large corporations. There isn’t a lot in the open market that seem attractive right now.

No-Fig-8614

The way Berkshire has worked has been the very very long game. They are studying businesses and the economics around it for years. To think they are looking at what happened this week to next week is the wrong type of firm that Berkshire is. Berkshire is part Management Consultant, Part Hedge Fund, Part Family Office.... it's a weird company for instance they bailed out goldman during the '08 crisis.... they've bought a portfolio of companies they think work very well for long term sustainable returns, and they also try to rebuild business like their Kraft Heinz debacle. They look at companies that are fundamentally undervalued and invest, sometimes they just buy the company and let it run the way it's been run because the market has devalued it but its fundamentals are strong. Other times they buy companies that are undervalued and have poor management, and then they sometimes just buy into companies as investments and not wholly owned. They also as warren has said they arn't experts in a lot of industries thats why it takes years to make an investment but for instance he notoriously said he can't value tech stocks yet he bought Apple and did well but also bought IBM and regretted it.

roniadotnet

Could this mean Apple has become or is becoming the next IBM?

KiraaCorsac

It's AI and it was always AI. In 1980s, IBM had had commercial voice recognition base on hidden markov models - an AI. This does not only recognize the words but also takes your order. It's super likely they are using some large language model

PandaGodFliesToMoon

If IBM bought msft for 3 mill it would be worth 1 mil rn.

Ready2gambleboomer

Bill tried to sell MSFT to IBM for $3 million and they passed. How you'd like to be that regard?

CapitalPrefer

Buy IBM, you can thank yourself later. Quantum computer is the real AI

sfaticat

It wont last. They offered the buybacks because the iPhone sales are down and their new products are failing. In the IBM stage of their lifecycle as long as Tim Cook is there

parallax_wave

It's the difference between long term profit and short term profit. Cutting costs and giving stock buybacks will jack up the stock price and guarantee the c-level execs fat compensation, so they couldn't give less of a fuck what happens 2-5 years down the road. As far as what these changes do long-term, I think there's plenty of evidence that gutting American workforces eventually weakens the company (IBM, GM, etc)

coolsnow7

IBM was ~15% of the total US stock market for many years.

jeremyascot

Then you become IBM

squaresnoo

IBM says hello

CapitalPrefer

Buy IBM you can thank yourself later. Quantum Computer is the real AI of the Future.

CapitalPrefer

Buy IBM easy money for towards the future,

bkbikeberd

IBM has tried this experiment of outsourcing every job they can to India.

Vast_Cricket

I still believe in what was posted 1 year ago. Since then I have been studying AI technology and concluded the technology is evolutionary not revolutionary. There are just a few companies like Google, Adbe, Amzn and IBM can benefit. AI, Pltr earnings are where they should be.

AlternativeOwn3387

what's your thesis for these companies? Apple Nvidia Cisco IBM Microsoft Texas Instruments Verizon why not just do 100% Fidelity Total Market Index Fund?

CaptainShoddy5330

At 2:45PM Eastern - S&P, TSLA. IBM did that exact thing. Not sure if others noticed in some other stocks.

Orennji

> Yeah because people need vegetables to survive. But lettuce growers don't produce lettuce until the entire earth is covered with it. Firms that fail to observe market trends and scale production/costs appropriately exit the market and a stable number of players eventually emerge. This is what I meant by basic economics. You keep ignoring this. >Weed is exceptional It's not. The black market is simply another set of firms, operating under production sub-scale models that are slowly losing market share to large producers with economies of scale, and more advanced value-added products like concentrates, vapes, edibles, etc. Do you see anyone buying black market lettuce from street corners? > it’s all wild speculation right now We already know the big players in cannabis and we can compare their market shares. Canada is the most mature federally legal, unlimited production market we have to study, and the top market share positions only slightly fluctuate every year between the top 5. There is always uncertainty in investing, but "wild" speculation is more akin to the tech bubble we are seeing now with triple digit P/Es tgst can easily turn into the next disappointing IBM or Cisco. I don't really care to convince you, but I was hoping you would have at least had the integrity to defend your thought process coherently. You could have made some good points, but I don't think you did.

IlllIlIIlIlII

Not much, the market is controlled by the big tech currently which is not his field of expertise, when Warren and Munger tried to buy tech like IBM, Oracle or BABA they got annihilated, the Apple was an exception because I believe Greg Abel did the DD.

JaxTaylor2

I guess I will too. Why not. It can join my IBM calls. lol

kimjongspoon100

I sold as soon as I heard IBM, Ill buy in again if the deal falls through

Traditional-Life-915

I'm sorry brother - I cut my losses on $IBM and moved on to $AMC. I'm regarded.

Traditional-Life-915

Cut my losses on $IBM and entered $AMC.

BarebowRob

I gained 5k on earnings from TI, then lost 7k on IBM earnings.

StatementOwn4896

They’re basically IBM or Xerox at this point.

reFridgeRatorRaiderG

MSFT and IBM are two of the leaders in quantum computing; now you know. You can rent Quanutum computing time from Microsoft

Mediocre-Ad2227

IONQ is on my watchlist. I'm invested in IBM partly due to their quantum work and their other attempts at innovation, and more so due to the turnaround in business strategy and profitability. IMO IBM has best chance to succeed with quantum among your list of majors; but IONQ is setting up as the best pure play in quantum compute.

Mediocre-Ad2227

Disagree that IBM work with quantum is fluff. IBM has a large R&D effort over a number of years, first working on getting efficient quantum machine to work, which IBM has accomplished, and next designing and building out a commercialization if quantum, getting it to scale out efficiently. IBM was an early first mover in this quantum effort. And the company that can scale out quantum capabilities commercially will have a strong first mover advantage. As a Software Engineer, I've worked with semiconductor machines for decades and partnered with IBM consulting. I can say "Quantum is the future", so far beyond anything we are all used to. It's revolutionary, beyond evolutionary.

Past-Advantage8584

The IONQ Quantum computer does not require absolute zero. It’s a different design than what Google and IBM have which are those chandelier type computers. Again they may be blowing smoke because their tech seems to be too good to be true.

Kranoath

Each time I think of Intel, I think of IBM, Motorola, Nokia etc...

dimp13

Blackberry actually had support of entire governments. For many government organization it was the only approved smartphone even when it lost market share on consumer market. Obama used Blackberry until 2016. Intel will not go away as a company for a very long time, but it may underperform the market for years to come. Look at IBM 10 year chart (another company government used to rely on). Anyway, good luck with your bet I will stick with "overpriced" NVDA and TSM. I may buy Intel if they show something real, not the prototypes or promises of future products. I am OK with not catching the exact bottom.

RTiger

The wheel is a good strategy. The risk is that the blue chip turns into a cow chip. This happens more often than investors believe it will.  Any number of examples exist. IBM and GE were two of the bluest chips back in the day. Then they weren’t. GE has come back of late. IBM has never seen a return to glory. I rarely see any Reddit threads on big blue.  A relative has been holding Intel for many moons. When he bought it was a premier blue chip stock   It’s been over a decade since it’s been relevant to most option traders.  Yes the wheel means slightly less downside than buying shares. However if the stock has a huge bull move, the wheel profits are paltry compared to shares. 

Traditional-Life-915

$HTZ calls printed - I'm out. Still in $IBM waiting.

dgreensp

I’ve been experimenting with long straddles myself, so I understand where you are coming from. I can’t tell you anything definitively about whether this would work, but I’d be happy to chat more about this. What I’ve noticed (and it sounds like you’ve noticed too) is, the total price of an ATM long straddle (call and put, together) often goes up before it goes down. Not always, but usually. Which suggests selling at some percentage gain (like your 30%), and some percentage loss. My particular interest is really cheap straddles despite a DTE of, say, two or three weeks (so there is time for the stock to move before much theta decay). For example, I saw a price of $0.40 a straddle last week on a $33 stock, expiring mid-May, and I thought, wait, people are betting this stock won’t move by even fifty cents over multiple WEEKS? I found the stock by looking for stocks hitting an IV low, because the absolute worst thing that can happen when you’re holding a straddle is for the IV to drop. What you want, ideally, is a likely IV rise. The stock is Hashicorp, and the reason for the low IV is the announcement of IBM planning to buy them for $35 a share. Still, there are all sorts of reasons the stock could move a little bit, so I bought a bunch of contracts. Sure enough, within 24 hours, there was a point in time where the straddle was up 20%. I’m holding out for a little higher. I’m excited to see what will happen today. The great thing about a straddle, with the DTE I am talking about, is you aren’t going to suddenly lose it all. There’s only so much it can go down, because of the time value. The worst case, as I said, is IV drops, the straddle loses (say) up to half its value overnight, the stock refuses to budge over the coming days, and then the value decays. You still have time to sell it without losing ALL your money, at least, if you don’t hold it until expiry in any scenario. Also, if something unexpected happens and everything moves, you make money. I like a bet where if anything unexpected happens, you win. I hadn’t thought of using a stock that has a really high IV, where the options are “expensive” rather than cheap. But maybe there’s a logic there about the IV being unlikely to go down? With a really short DTE, I would worry about needing to understand the fine details of theta decay, and being in situations where I need the stock to move NOW in order to make money, but it just isn’t moving much in an afternoon, which is pretty normal for a stock. But looking at the NVDA graph, it sure does move a lot.

Cruezin

IBM doesn't manufacture shit anymore. It's almost a pure IP play in semiconductors these days.

varrock_dark_wizard

Sure but the risk free rate right now is like 5% IBM has been too big to fail for the last 10 years but has had no growth with a 4% yield, the same can happen to INTC.

RetirementGoals

Really don’t understand that though process. Just because a stock offers dividends does not mean it’s not a growth stock or become stalled. Soooo many offer dividends yet are still considered growth: MSFT, KO, SHW, JNJ, IBM, TGT and so on and so forth

Traditional-Life-915

$IBM is up 1% overnight... Hopefully it's a warm up to cook during regular hours haha

Traditional-Life-915

BTW everyone, I've spent all weekend wondering if I made the right plays for this coming week... Short answer is idk about those $HTZ calls but I am mighty confident that $IBM will recover to the $175-$180 zone. I'll post under this comment thread on Friday with an update! Wish me luck regardsemote:t5\_2th52:12787

Traditional-Life-915

$IBM recovery after a dramatic overreaction missing revenue estimates.

Traditional-Life-915

Simply regarded. $IBM missed revenue earnings but not so much to cause the turnaround. Kind of looking for that dead cat voice then I'll sell my options. Hertz is purely speculation. They probably have room to drop another 20% because of the terrible EV situation they got themselves in. However, I'm looking for a $HTZ dead cat bounce as well and I'll sell.

DopeAbsurdity

It makes sense that the leader of AI should be a car company instead of Microsoft, Google, OpenAI, IBM or any of the other big companies that have a shit ton more coders and were already in AI adjacent industries or have been working on multiple types of AI for years NOPE it's gonna be Tesla.... makes sense

Traditional-Life-915

The $IBM and $HTZ calls I bought Friday.

Dan_inKuwait

Why don't you talk about IBM instead of shitting the place up by asking for tips?

WhitePaperMaker

IBM is the AI and cloud company that nobody is watching. Their view on hybrid cloud is probably most accurate. Amazon was literally bragging last quarter about saving money by hosting on premises servers. Their last 30 years sucked because the last 3 CEOs weren't techies. This new one Aravind is the absolute G.O.A.T. Hence why the stock is trading 50% over its long running range.

HumanRightsAdv

IBM is very business focused obviously hence we don't hear too much from them but their in this game to win it, they could be the ones in the lead

No-Introduction-6368

I like it more reading all these dumb comments on it. If quantum computing becomes a real thing IBM will be one of the front runners. IonQ, Dwave, rig, all might be right along with them but rather have the dividends while really not going all in quantum stocks.

Sagonator

IBM? Bruh, how about volkswagen. The stock in a perfect position to grow. That being said, I long understood that stonks do not obey TA. If they did, every stock would have been a flat line.

Honest-Abe2677

IBM is an established dividend stock that doesn't have major jumps or drops often. Seems like one to hold shares rather than gambling options like it's a mega growth stock

Past-Track-9976

Add IBM

HumanRightsAdv

I like IBM big time but long-term, their building quantum computers

Perennium

We bought hashicorp, people liquidated IBM stocks to buy hashicorp because what’s gonna happen is a stock split for those that own hashicorp- when they bought RedHat, RedHat stock went 2:1 split so everyone’s coffers doubled overnight.

RationalExuberance7

I think we’re seeing the birth of the new platforms - the AI platforms that others adopt instead of creating their own. The advantage of the AI platforms will only increase exponentially. Today is the new IBM -> Microsoft moment

butter14

Xerox, IBM, GE, Hewlett Packard, Kodak....

Traditional-Life-915

Rally regards to get IBM to $195 lmfao. Make this poor guy a millionare

Traditional-Life-915

Mil sounds good... I'll need help though - rally regards to squeeze IBM to $195 lol

Decent-Ad-4358

Holding IBM and HTZ calls? Trying to speed run that account to 0?

FirebaseZ

IBM will print Lunas

MrZwink

Google and IBM are very different companies. Google is the new Yahoo... Remember yahoo?

Open_Minded_Anonym

Hubbell Inc from 2004. My wife has shares of IBM from 1972, but that’s not a stock we picked.

Money_Essay7793

Sureee IBM is full of boomers. Don't even trade boomers stock. I'm surprised ancient IBM is still alive after fumbling the biggest boom in personal computers, servers and mobile. It will fumble AI and whatever quantum fantasy you're talking about

Money_Essay7793

IBM is for boomer

CapitalPrefer

IBM is with Quantum Computer is the real AI computing!

CapitalPrefer

IBM on sale, 👍.

Amaeyth

Well, yeah, it's a mature company so gains are limited. It's like holding IBM stock. In a bull market the name of the game is growth stocks. Intel may reach $50 in the near term, but most of the focus in this space is on nVidia and AMD which have valuations that don't make sense to begin with, and their volatility speaks to that. For Intel to have a 300b+ market cap, they need their foundry business to become profitable, and the time to market on leading designs needs to be shortened. As you likely know, those are high priority targets. 14nm+++++ and the previous set of management heads were not suited to run an engineering company. Pat is doing much better. tl;dr Intel stock between 25-50 for another 3 years while fabs get built up and R&D progresses barring some black swan event.

Abysswalker794

Yeah let’s take IBM as an example and not Apple or Microsoft which both made several 100% after introducing dividends. I mean you are not wrong. IF Google behaves like IBM they will be treated like IBM. But I see no evidence or reason why we should expect them to behave like IBM. They have several Premium businesses with moats as wide as it can be, and they are still investing huge money into the business and have several growth opportunities for the future.