International Business Machines Corp
IBM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$425.00 | Tntdt | Vml |
Even With Kyndryl Out of the Picture, IBM's Future Looks Bleak
Business Strategy and Outlook
IBM still brings the “big” to its moniker Big Blue. IBM is one of the world’s largest IT services companies, the dominant provider of mainframes and a prominent player in the public cloud, data management systems, and other software products, like middleware and integration software. While IBM has tried to refresh its diverse offerings, we think IBM’s moat is deteriorating as the cloud transition chips away at IBM’s competitive advantage associated with customer switching costs.