Business

Jim Cramer tells investors that IBM is a “trust but verify” situation.

CNBC’s Jim Cramer on Thursday advised investors to tread carefully if they are debating whether to buy stocks. IBM after the company reported third-quarter earnings.

“Even after today’s nearly 5% gain in IBM stock, the stock is still substantially down from where it traded just a few months ago. I am optimistic…but keep in mind that going forward, the trust-but-verify situation remains,” he said. .

IBM beat revenue and earnings estimates in its third-quarter earnings release on Wednesday and raised its earnings guidance. The enterprise software and consulting company said revenue was up 6.5% year-over-year.

While a strong US dollar is a deterrent for the company, which expects its annual revenue to be 7% less than it could otherwise earn, IBM still reiterated its forecast made earlier this year of about $10 billion. dollars of free cash flow.

“Put it all together and while IBM still has a lot of room for improvement, this quarter was a big step forward for them and a big win for the bulls.” Kremer said.

He added that the company’s spin-off of its Managed Infrastructure Services business at Kyndryl in November 2021 appears to be paying off.

“Remember, IBM went through all that Kyndryl spin-off to be a growing company again, and now they are—they are at peak growth,” he said.

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing free to help you build long-term wealth and invest smarter.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button