That's lower than Walmart , for comparison. What remains of IBM will be less focused on low-margin services and more focused on high-margin software. More than half of IBM's revenue currently comes from services. When the spinoff is done, the majority of IBM's revenue will be tied to cloud software and solutions. Hybrid cloud computing and artificial intelligence will be at the center of everything IBM does.
IBM is betting that its large enterprise clients will opt for an infrastructure that mixes on-premises hardware and public cloud platforms, instead of simply going all-in on one of the major cloud platforms. The company's on-again off-again flirtation with growth has rubbed investors the wrong way, and the stock has been stuck for years.
This spinoff may be just what IBM needs to change the narrative. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception.
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Stocks Tech Stocks. Article Sources. Investopedia requires writers to use primary sources to support their work. Investors are reacting bullishly on the news of the year-old company's plans.
IBM stock is up approximately 7 percent for the day as of press time. You must login or create an account to comment. He also knows stuff about enterprise storage, security, and human space flight.
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