IBM has a better short-term outlook

Article Excerpt

IBM has a long history of transforming itself in response to rapid changes in computer technology. In the past few years, it has shifted it focus to its cloud operations, which let users go online to access data files and computer applications stored on remote servers. The company is also expanding its artificial intelligence (AI) offerings and cybersecurity capabilities. As part of that strategy, IBM spun off Kyndryl on November 3, 2021. That new firm helps corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares they held. After a slow start, Kyndryl is now up 5% since the split as it’s helping clients install and operate new AI-powered applications. IBM has also gained 38% since the spinoff on rising demand for its AI expertise. We feel both will continue to rise in the coming years, but IBM has better short-term prospects. INTERNATIONAL BUSINESS MACHINES CORP. $171 is a buy. The company (New York symbol IBM, Manufacturing &…