With all the AI meme companies rocking the market last year, this behemoth has silently honed its skills in that domain and could stand to benefit from the mass AI adaption in years to come. Monthly chart clearly shows the potential. 2024 is likely to mark the turnaround year for IBM. Upside targets: 175, 190
Comment
⋅
Playing perfectly. First target should reach soon.
IBM has a ton of revenue in consulting, and AI is very negative for this industry, since AI is perfect at knowledge based work. their AI revenue is too small compared to consulting. furthermore, mainframes will be in decline. this stock is extremely overpriced, forward p/e of almost 19 with 5% revenue growth this year (their own forecast), just on this growth profile p/e should be 13-14 at most. and so much of their revenue is legacy business that AI will disrupt. strong SELL, overpriced bubble.
CheelooTrader
⋅
@heavy_assault, Thanks for your views. I only trade of off technical setups. Your analysis might be spot on but market may not see it that way or it may not see it as such right now. Price is bullish and likely to go up until sellers show up.
heavy_assault
⋅
@CheelooTrader, whats incredible is back in end of 2021 this thing was on a p/e of 12-13 or something, when risk free rate was ~1.7%. now risk free is ~4%, risk free p/e = 25, yet ibm has forward p/e of ~19. so massive multiples expansion on much higher risk free rate, growth outlook has barely changed, management is targeting 3-5% revenue growth
think about it for a second, wtf? absolute tulip ponzi bubble. wall st manipulators simply lowered the WACC on ibm to much lower levels than 2021, despite risk free rate being much higher. this applies to mega cap tech too as well as a few other market darlings, though no where near as pronounced as ibm. im in australia and the best example of WACC manipulation is the biggest darling on our market CSL, many fund managers and retail investor worship this stock like a cult, extremely overpriced overhyped bubble. you can justify ANY p/e with a low enough WACC, even ∞ p/e when WACC = TGR.
lol fund managers, when they love a stock more than their own children, they just lower the WACC and make the p/e go to the exosphere. bond yields, risk free, equity risk premium, all mean nothing to these manipulating f**ks.