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International Business Machine Corp (IBM)

BY Chris Andreou

|July 29, 2021

Trade the world’s original tech titan.

What is IBM?

International Business Machine Corp, popularly known by its acronym, IBM, is a global provider of advanced technologies and innovations. The company operates several divisions, including Cognitive Solutions, Cloud and SaaS Platforms, Global Business Services, and Systems and Global Financing.

IBM manufactures and sells hardware and develops operating systems software. The company also offers business outsourcing services, tech maintenance, business consulting and financial solutions.

Research has been a core competency for IBM down the years, and for the last 25 years in a row, the company has held the record for most patents generated by a single company.

Its nickname “Big Blue” comes from its distinctive blue logo, as well as previous company rules that mandated a dress code of white shirts and blue suits.

Who Are The Key People At IBM?

Arvind Krishna is an American-Indian businessman and the Chairman and CEO of IBM since 2020. He began his career with the company back in 1990, so he knows IBM inside out. He was a key figure in IBM’s acquisition of Red Hat, the largest purchase in the company’s history.

Other key figures include:

  • Simon J. Beaumont (Vice President, Tax and Treasurer)
  • Howard Boville (Senior Vice President, IBM Hybrid Cloud)
  • Michelle Browdy (Senior Vice President and General Counsel)
  • Gary Cohn (Vice Chairman of IBM)

How Is IBM’s Business Growing?

In the first quarter of 2021, IBM’s revenue rose 1% year on year to $17.7 billion, exceeding Wall Street’s expectations of $17.4 billion. The gains were driven by a 21% rise in IBM’s total cloud services revenue, to $6.5 billion.

This trend shows the company is having success with its cloud strategy. IBM takes a slightly different approach than most of its competitors, focusing on “hybrid” cloud solutions that mix its public cloud services with its clients’ on-premise private cloud.

Hybris solutions are particularly appealing to clients who require a high degree of data privacy, but who nonetheless benefit from the cost savings of the public cloud. IBM is even providing its hybrid solution to the International Space Station.

For current clients of IBM, switching costs to move to another provider are prohibitively high, which creates a reliable revenue stream for the company.

The company’s cloud solution comprises 37% of its revenue, and with the cloud computing industry expected to reach $360 billion by 2022, IBM is likely to see continued growth in this area for some time.

Where Does IBM Do Business?

IBM is headquartered in New York and serves business in more than 170 countries. The company employs more than 380,000 staff, with 130,000 employees in India alone. Its dependence on the workforce in India has been key to keeping staff costs down at IBM.

How can I trade International Business Machine Corp (IBM)?

IBM is listed as a tradable asset under the ticker IBM on TIOmarkets MT4 or MT5. Like all other assets listed on our platforms, you can choose to long or short on IBM.

You can also trade the Dow Jones index (DJ), which includes IBM as a constituent company.

What are the best trading conditions for IBM?

As we’ve seen with the recent pandemic, the stock markets can be prone to large swings up or down based on economic turmoil, recovery and economic conditions.

Execution speeds: Slow order execution speeds can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.

At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you clicked.

Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking.

High leverage can greatly increase both the risk to your investment and the potential returns.

If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate with your investment goals.

TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and it’s affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions.

The comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with any legal requirements for financial analyzes and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits the duplication or publication without explicit approval. FX and CFDs are leveraged products. They are not suitable for every investor, as they carry a high risk of losing your capital. Please ensure you fully understand the risks involved.

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Chris Andreou

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