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Businesses globally are looking to leverage blockchain technology to increase their efficiency. They are trying to incorporate this new technology into their operations to streamline their overall processes. Therefore, many techs and blockchain companies are seeing an increase in their popularity.
Many blockchain stocks have seen a rapid rise in their value. And one such company is IBM which is gradually making a name in the blockchain sector. International Business Machines Corporation (IBM) is not a new name for the people in the tech industry.
IBM is the oldest tech company worldwide and was founded by Charles Ranlett Flint in 1911. The company is known for its top-quality products and services in the following areas:
- Artificial intelligence
- Cloud computing
- Computer hardware
- Quantum computing
The company is one of the largest employers globally, with a workforce of more than 282,000 employees. Investors have been keen on having IBM in their portfolio since the company has always come up with revolutionary ideas. IBM is known for the inventions of:
- Automated teller machine (ATM)
- Dynamic random-access memory (DRAM)
- Floppy disk
- Hard disk drive
- Magnetic stripe card
- Relational database
- SQL programming language
- UPC barcode
Table of Contents
IBM Statistical Overview
IBM Stock Forecast 2023
The predicted trajectory for IBM stock is positive for 2023. Though, no drastic price climbs are expected. The steady, stable increase of the stock price is expected, with a $180 price tag per share at the end of the first half. A further $33 climb is expected at the end of the year to sit at $213. At the end of 2023, the share price will enjoy a 16% addition.
If the share price reaches a 16% growth over the year, it’s a positive compared to 2022 that saw an 11% increase.
January 2023 is predicted to close at $156, with February taking on slight bump to $164. The first quarter will end at $172. The second quarter will close at $180, while the September earnings call will come at $194 per share price. Ending the year at $213 is a great outcome for the historically profitable stock.
With artificial intelligence making waves in the news recently, it’s bound to positively rub off on the company’s overall revenue in the New Year, as industry players continue to invent business opportunities.
IBM Stock 2022
The IBM stock has remained volatile up till now, in 2022. While the share price was stable throughout the first couple of months, IBM stock plummeted from $126 to $134 at the start of March. Many experts have deemed the Russian-Ukrainian war as the reason for the fall in its value in the last couple of months.
However, other factors causing the share price to go down include the lockdown of the various cities in China. The new wave of the Coronavirus is sweeping through the country and many cities, including Shanghai, are in complete lockdown. Therefore, it is impacting the share values of companies globally.
Most importantly, the hawkish measures of the US Federal Reserve are also not helpful in regaining investors’ confidence. The interest rates are already at the highest level in the last 20 years to curb the growing inflationary pressure. As a result, the IBM stock has remained volatile throughout this year.
While all of these are external factors and don’t have to do much with the company’s policy, it is impacting the company’s overall policies. Investors should pay close attention to these factors to understand how the share value will play out in the coming months.
IBM started the year with a share price of $136.04, and sells at $149.86 as of press time.
IBM Stock 2021
IBM stock witnessed a gain of 6.2% in 2021. The prominent reason for its growth is the Kyndryl spin-off that caused the share price to jump from around $121 at the start of the year to $130 by the end of 2021. Investors showed their confidence in the company despite IBM seeing a fall in its revenue by 30%.
IBM’s completion of the Kyndryl spin-off in the first week of November helped its stock gain some value. The separation will enable IBM to utilize its resources for cloud computing and blockchain technology. Nevertheless, the shareholders failed to see IBM delivering on its promises for innovation.
Many investors were also not impressed since the company posted lower revenue and dividend yield for its shareholders. Despite all this, IBM’s stock price managed to go up and ended up at 6% higher than it was at the start of the year.
IBM Stock 2020
IBM’s stock suffered the same hit in 2020 as other companies in different sectors due to the global pandemic. The share was trading at $137 in February 2020, just before the world went into its first lockdown. As soon as the restrictions came into place by 2nd week of Mar 2020, its stock price went down to $94.
The recovery of the stock value was optimal since it reached $120 by the end of May as the governments globally eased the restrictions. Still, the stock lost its value by 6.5% by the end of 2020. A miscalculation in the earnings was the main reason shareholders lost confidence in the company’s stock.
IBM’s earnings, as per its headline pro forma number, were not even close to the GAAP (Generally Accepted Accounting Principles). In addition, the company’s revenue also saw a decline of 2.6%. Therefore, the share price sank to 6.5% in 2020.
IBM Stock 2019
The IBM stock price continued to fluctuate throughout the year 2019. Its stock price increased from $110 at the start of the year to $136 by the second week of April. At the beginning of the third quarter, IBM’s stock price fell to $122 and then increased to $143 by the third week of August.
The first rise in the share price was due to increased investors’ confidence that anticipated its price to go up. However, it went down after the earnings reported in the second quarter by IBM. The second surge in the price was due to IBM’s Red Hat acquisition.
The deal was finalized by July 2019, and IBM acquired the company for $34 billion. This deal made the investors believe that IBM’s stock value has the potential to grow in the next few years.
IBM Stock 2018
2018 was a stable year for IBM, but its share price suffered a significant drop of 26%. The low performance of the company’s stock in the last couple of years, plus the threat of a trade war in China, sent the IBM share tumbling down from its year-high value of $154 in the first few days of January to $113 by the end of December.
Furthermore, many analysts termed IBM’s overall earnings and profits as an irreversible structural decline. Even though IBM announced it would be acquiring Red Hat (RHT), the investors were not too sure about the company’s growth in the coming years.
On top of that, Warren Buffet existed from IBM and announced that his company, Berkshire Hathaway, had no shares in IBM. Berkshire Hathaway started buying IBM shares in 2011, but it ended up moving all of its investment to other companies, particularly Apple.
IBM Stock 2017
The IBM share continued to drop down for nine months consecutively in 2017. Its value decreased from $172 in the first few days of January to $136 by the second week of September. It gradually recovered and returned to the $145 mark by the last week of December.
The main reason was the constant fall in revenue and sales. It completed its streak of 22 quarters with a decline in revenue. As a result, the shareholders continued to lose faith in the company’s overall strategy and how it would bounce back from this loss.
Moreover, the market followed the pattern of Warren Buffet, who started selling his shares in IBM. Investors weren’t confident enough to buy shares that a big name like Buffet was selling. Therefore, these factors led to the stock price of IBM going down significantly throughout 2017.
While there were some pros of investing in IBM, such as great resistance in recessions and lower valuation, many investors were not keen on putting their money into it. Ultimately, the IBM share price continued to see a fall in the early weeks of 2018.
IBM Stock 2016
IBM’s overall share performance was optimal in 2016 compared to previous years. The company’s share value saw an increase in its value from $116 in the initial days of January 2016 to $160 by the end of December. The reason for the growth was its fantastic patent strategy that set the company to be the first to hold more than 7,000 patents.
However, one concerning factor for shareholders was the company’s growth in recent years. The year-over-year net income declined from $2.962 billion to $2.854 billion. Moreover, the company’s revenues were on par with the previous year.
The company also did not manage its debt properly, and it was barely able to keep its cash flow stable. Investors buying shares were focusing more on value rather than financials. IBM had an impressive dividend yield and was the main factor many investors purchased its shares.
IBM is undoubtedly a pioneer in the tech industry and has a strong reputation. It holds the reputation for being the first company that gives people easy access to the internet. IBM is now known as a trendsetter in revolutionizing the technology sector. However, the share price saw a significant loss in its value over the last couple of years.
Nevertheless, the company is looking to progress in different avenues, including blockchain technology and cloud computing. We can expect to see something out of the box, and it can cause the share price to go up soon.
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