IBM teams up with Verizon

Article Excerpt

IBM, $139.18, is still a buy. The stock (New York symbol IBM; Shares outstanding: 896.3 million; Market cap: $123.2 billion; TSINetwork Rating: Above Average; Yield: 4.7%) is one of the world’s largest computer companies, with operations in over 175 countries. IBM paid $34 billion for Red Hat in July 2019. That firm is a leading developer of software for cloud systems. Thanks to Red Hat’s expertise, IBM has signed a long-term deal to help Verizon (symbol VZ on New York and a recommendation of our Wall Street Stock Forecaster newsletter) improve the performance of its 5G wireless networks by using artificial intelligence (AI) to automate certain functions. Verizon will use IBM’s cloud platform for its 5G network. AI will also look for potential network problems on the platform, and thus will cut maintenance costs. IBM has not yet revealed how much this contract is worth. However, the agreement should lead to more deals with other wireless carriers as they roll out their…