IBM is a technological giant which has been synonymous to strength and stability throughout decades. But has the speed of recent technological trends made it harder for this giant to catch up?
If you would like to be guided on how to perform the necessary trades depending on how IBM might proceed with their innovation, we will provide you with a quick overview. Read the rest of the article.
Industry: Information Technology Services
To begin with…
It is not a secret that IBM has struggled with their revenue growth over the past few years.
However, this tech titan has started to shift its strategy to that of cloud computing and has set its sights to compete with the leaders in that sector.
Last 2019, it acquired Red Hat for $34 billion. And the impact of this strategy shift has already been noticeable, as the cloud accounted for 35% of the overall revenue of the company – which is up from 25% one year ago.
The total year-on-year revenue growth generated by cloud has increased to 34%, which is up from 23% from the previous quarter.
The key factor here is the company’s commitment and focus on the hybrid cloud strategy.
Another thing to note…
It is important to consider your over-all financial well-being before participating in the financial markets.
The future is uncertain, and risks are involved.
Having said that, provided below is a guideline on how to trade IBM shares.
Table of Contents
- Why Trade IBM Stock?
- IBM Stock Performance
- IBM Stock Forecast
- How to Trade IBM Stock?
- Frequently Asked Questions (FAQ)
- Best Brokers for Trading IBM Stocks
Why Trade IBM Stock?
This tech giant is now evolving in its strategy.
With their shift towards cloud computing – they are specifically focusing on the hybrid cloud solution.
Why does this matter?
The hybrid cloud solution – which can run on any aggregate of private or public clouds – might serve as an opportunity for serious growth.
The research firm IDC conducted a study which yielded the possibility of around 90% of the companies globally might be using multiple clouds 2 years from now.
The Red Hat acquisition enables IBM to be a significant player in the hybrid cloud industry.
Even with that outlook and the company’s strategic positioning in that market, the market currently values the company at only around 11 times its forward earnings.
There is still a significant upside potential if the company should deliver in the future.
All eyes on the developments on this potential revenue stream.
There has also been an increase in IBM’s strategic partnerships with other companies.
In the second quarter, IBM has developed partnerships with Adobe Systems, CaixaBank, and Verizon.
The hybrid cloud solution is also suited for helping companies in heavy-regulated industries better deal with the regulations set forth by the different countries where they have operations in.
Thus, the potential for growth is there.
- Copy investment portfolios of top IBM traders
- Trade stocks commission-free
- Practice with a free demo account
- No overnight fees
- Risk management tools
A leader in CFD instruments trading is eToro. To explore the company and its platform in more detail, please do check out this write-up here.
eToro also was the first to introduce the social trading component. It boasts of being the world’s primary social trading network, nowadays.
Here’s the deal:
This social trading component is advantageous to the both the beginner and the more experienced market participant.
Beginners could search for the top performers among their peers – study the numbers and analyze whose style is more of a fit – then simply copy their trades.
The more experienced traders will also be incentivized should their trades be copied by their peers.
And eToro’s platform is intuitive and is easy to navigate around even for the more recent market participants.
The best part?
Zero commission fees.
Market participants can be active as much as they would like to be with their trade executions.
And they will not incur additional fees (i.e. management fees) while doing so.
Another innovation that they introduced to their social trading component, is CopyPortfolios.
This feature can be employed in a couple of ways:
- Top Trader Portfolios – Beginners may leverage on the experience and success of their more seasoned peers, and copy their trades
- Market Portfolios – Market participants may also use this feature in identifying the sectors which are showing momentum, and identifying the instruments in that particular sector.
Rest assured that eToro is a fully regulated broker in the different countries where it is offering its services.
It adheres to the rules that the following regulatory bodies below have implemented:
- CySEC – Cyprus Securities and Exchange Commission
- FCA – Financial Conduct Authority
- ASIC – Australian Securities and Investments Commission
- Competitive spreads for IBM
- Trading with as little as $100
- Fast and reliable order execution
- Risk management tools
- Fully regulated by the FCA, CySEC and ASIC
Plus500 is an industry leader in CFD trading.
CFD, or contracts for differences, are derivatives which enable traders to have the opportunity of profiting regardless of the market’s general direction.
It offers CFD products on various financial instruments, such as: commodities, stocks, ETFs, options, currency pairs, and indices.
If you’re interested to know more about Plus500, please proceed here.
What’s the real story?
The platform not only provides enough information to make informed decisions, but also packages them all in a neat and simple package for easier execution.
Now get this:
Traders may also use the leverage that Plus500 offers, which could go as high as 1:30.
How does leverage work? If a trader only has $100 in his account, he may execute trades like he has $3000 in capital, if he opts to use the full leverage.
We can’t emphasize enough:
Plus500 values the trust that clients place in them.
Hence, it is compliant with rules and regulations set forth by the financial bodies in the different countries where it provides its services.
These are the following bodies:
- Plus500CY Ltd authorized & regulated by CySEC (#250/14).
- Plus500UK Ltd authorised & regulated by the FCA (#509909).
- Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
- Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
IBM Stock Performance
It began the year 2020 by closing at $135.42/share; and is currently trading at a range for the year.
IBM Stock Forecast
We’ve also provided an overview of how we perceive the company will fare in the near future.
Now get this:
These forecasts are not guaranteeing of any future price performance whatsoever, and financial risks are involved.
2020: The Old Titan is Finally Adjusting
After a series of disappointing revenue growth in recent periods, this tech giant has now started to implement a strategic change via its acquisitions.
2021: Accelerating Transition
By focusing on the hybrid cloud solution, the company maybe able to tap in the high growth potential in this target market.
And it may also even be able to leverage its consulting business arm while at it.
How to Trade IBM Stock?
Simply follow the steps below and you're good to go:
Open an account with an online broker.
For you to trade IBM stock and other company shares, first you need to open an account with a brokerage which offers a platform for trading.
Signing-up for an account only takes a few minutes to accomplish and after completing this process, you need to make a deposit so you can start investing.
Open your broker's trading platform.
Let's say you have opened an account with a specific brokerage and you have already funded it. The next step to do is to open their platform to start trading.
Look for the IBM stock (symbol: IBM).
After opening the platform, search for the IBM stock by using the search bar and entering either "IBM" or its stock symbol "IBM".
Select Trade and set the amount.
Click on "Trade" and specify the amount that you wish to invest. You may also set several specific parameters depending the features that are offered to you by your broker.
Execute the order.
Initiate the trade by executing the order.
Should I trade IBM stock?
IBM's share price is currently trading at only 11 times its forward earnings.
The market may have already factored in the disappointing growth in recent periods.
Then it may mean that the upside potential is attractive should the company be able to succeed in the hybrid-cloud market.
Frequently Asked Questions (FAQ)
How Much is the IBM Stock?
Here is the current stock market price of ( )
Who Owns the Most Shares of IBM?
As of June 30th of this year, the top three institutional holders are The Vanguard Group Inc, SSgA Funds Management Inc, and the Blackrock Fund Advisors.
How Many Outstanding Shares Does IBM Have?
As of June 30th of this year, IBM has 0.895 billion shares outstanding.
Where Can I Trade IBM Stock?
You may start trading IBM shares from either eToro or Plus500. Rest assured that they are industry leaders which have intuitive platforms for you to be able to trade various CFD instruments.
Best Brokers for Trading IBM Stocks
Decided to trade IBM stock CFDs? Below are our recommended list of licensed and regulated brokerage firms which offer this specific financial instrument on their platforms.
Simply click on the IBM Page of your broker of choice and you'll be directed straight to their stock trading page.
Min Deposit: $200
Regulation: CYSEC, FCA
Min Deposit: $100
Regulation: FCA, ASIC, CySEC
Min Deposit: $100
Regulation: CBI, ASIC, FSC, FSA, FSB
Min Deposit: $5
Regulation: IFSC, ASIC, CySEC