IBM is set to report its second-quarter 2024 results, with revenue expected to decline to around $14.6 billion, down 6.6% from last year. Software sales, led by Red Hat, are expected to drive performance, along with the growing demand for artificial intelligence solutions. IBM’s infrastructure business may face some challenges, but the company is focusing on core areas such as cloud computing and automation. The stock has shown strong gains, benefitting from interest in generative AI, and is currently trading at about 19 times consensus 2024 earnings. IBM’s focus on high-growth areas and strategic acquisitions could support future growth prospects, with a valuation of $180 per share. Compared to other companies in the market, IBM’s profitability is holding up well, with potential for future growth.
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https://www.forbes.com/sites/greatspeculations/2024/07/09/up-30-in-last-twelve-months-will-ai-and-red-hat-power-ibms-stock-higher-post-q2-results/
