IBM further claimed that Poughkeepsie would become their mainframe for quantum computing development without further breaking down the $20 billion plan. The company also recognized the support from the government as a positive factor. At the time of writing, shares of IBM in premarket trading are mainly flat to slightly down, despite the fresh announcement of the $20 billion plan.
IBM chart and analysis
Notably, IBM is one of the better-performing IT services stocks; it outperforms 74% of 155 stocks in the industry. Over the past month, IBM traded in a wide range from $118.61 to $130.99, staying slightly above the 20-day moving average. Technical analysis indicates a support zone from $121.35 to $122.77 and a resistance zone from $126.62 to $129.34. TipRanks analysts rate the stock a ‘moderate buy,’ with the average price in the next 12 months reaching $145.25, 15.52% higher than the current trading price of $125.74. In particular, out of 10 Wall Street analysts, five have a ‘buy’ rating, four have a ‘hold’ rating, and one has a ‘sell’ rating.
Note redemption
Toward the end of September, IBM released its 8-K form, which stated that the company is set to redeem $900 million of 2.875% Notes due 2022. This indicates that the tech giant is in solid financial condition and able to pay off the certificate of deposit or bond on or before its maturity date. While IBM is down 7.57% year-to-date (YTD), the catalysts of bond repayment and huge investments over the next decade, supported by the US government, could provide the next leg-up for the shares. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
