Analyzing IBM’s Strategic Imperatives
IBM’s (IBM) Strategic Imperatives revenue has continued to grow, boosted by its cloud and security business. The Strategic Imperatives business, which comprises its cloud, analytic, mobility, and security business, contributes ~47% of IBM’s overall revenue.
The graph above shows IBM’s Strategic Imperatives revenue over the last five quarters, during which it has grown at a compound annual rate of 3.6%. Meanwhile, it cloud, analytic, and security revenue grew at a compound annual rate of 7%, 2.2%, and 12.5%, respectively.
IBM has continued to benefit from enterprises’ ongoing trend to migrate their on-premises database to the cloud platform. Also, as discussed in the previous part, the tech giant is continuously signing new cloud and analytics support deals, boosted by growing demand.
Growing cyber terrorism threats have strengthened demand for IBM’s security offerings, QRadar and Resilient. Launching more such innovative products may help the company reduce its gap with other popular cloud operators, such as Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, and Google (GOOGL).
IBM’s (IBM) Cognitive Solutions segment, which comprises ~23% of its total revenue, is expected to deliver another excellent quarter, driven by strong demand for its Watson AI platform and blockchain offerings.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.