Background and overview
International business machines (IBM) is one of the oldest and most successful technology groups in the world. The company currently serves several technological end markets such as cloud computing, artificial intelligence and IT infrastructure. In the future, IBM will continue to be disturbed by several different colleagues. Any competitor beats IBM in terms of market share because none of IBM’s products are number one in their product category. This means problems for the future, as the disruption is already finding its way into several business areas.
Finances are strong
While other areas of IBM are weak, the overall financial condition is good. This is due to IBM’s disciplined cash focus and overall discounted valuation. Many value investors point to IBM’s return on investment and fundamentals, which suggest the company is undervalued compared to its peers. This is done with the intent of institutions to …