Is IBM a Good Stock to Buy before Earnings?
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Interestingly, recent trends support this outlook. In the first quarter, IBM's Software revenue grew by 7% year-over-year to $6.3 billion (as per the image below), driven by strong performances in hybrid cloud and automation. In addition, IBM has continued to acquire companies such as HashiCorp, DataStax, and SeekAI in order to improve its AI and backend service capabilities. The company is also investing heavily in its AI platform, watsonx, and in quantum computing. As a result, analysts believe that these moves, along with the expected improvements in profit margins, could help IBM deliver consistent earnings growth.
However, there are still risks that investors should watch for. Indeed, IBM's Consulting and Infrastructure units remain under pressure. As previously mentioned, the Infrastructure segment is expected to decline, while the Consulting business is anticipated to show only modest gains. Therefore, investors should pay close attention to whether IBM updates its guidance, particularly in these weaker areas, and whether it continues to improve margins.
What Do Options Traders Anticipate?
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 6.3% move in either direction.
What Is the Target Price for IBM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on nine Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $287.53 per share implies 1% upside potential. At the same time, TipRanks' AI Analyst has an Outperform rating and a $316 per share price target.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
4 hours ago
- Business Insider
Bitcoin Just Beat Amazon. Is Apple Next?
On July 14, Bitcoin officially became more valuable than Amazon (AMZN). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. After jumping nearly 13% in just a week, the world's most famous cryptocurrency crossed $122,600 and hit a market cap of roughly $2.4 trillion. That pushed it ahead of Amazon's estimated $2.3 trillion valuation, making Bitcoin one of the five most valuable assets on Earth. Not bad for a digital token some still call 'fake internet money.' Bitcoin ETFs Fueled the Surge The move wasn't driven by hype alone. A record wave of inflows into spot Bitcoin ETFs played a huge role. In two back-to-back trading days, U.S.-listed Bitcoin funds pulled in over $1 billion each, the strongest streak since they launched in early 2024. These ETFs have become the gateway for traditional investors, from hedge funds to pension managers, to get exposure to Bitcoin without touching crypto wallets or exchanges. BlackRock's fund (IBIT) alone now holds more than $80 billion worth of BTC. Washington Cleared the Way But it wasn't just the money pouring in. Policy momentum has finally turned in Bitcoin's favor. In July, Washington held what's now being called 'Crypto Week' — a slate of pro-crypto legislation that included clearer rules, protections for digital asset investors, and a much-needed signal from lawmakers: crypto isn't going away. That rare bipartisan alignment gave institutions the green light to step in more aggressively. Trump Helped Bitcoin's Ascent Then there's the broader backdrop. The Trump administration has leaned crypto-friendly, the dollar has been weakening, and many investors are looking for alternatives to centralized finance. Bitcoin, with its hard cap of 21 million coins and borderless design, is looking more attractive. It's become a structural piece of the new financial system. Bitcoin Behaves Like a Big Tech Stock And that's probably the most important shift underway. Bitcoin isn't being treated like a fringe asset anymore. It's moving in sync with tech stocks and showing up in institutional portfolios. One study earlier this year found that Bitcoin's correlation with the Nasdaq and S&P 500 reached 0.87 — higher than it's ever been. Essentially, Bitcoin is a risk asset being priced in alongside the biggest names in tech. Bitcoin's Scale Is Massive Of course, the narrative is about more than just movement. It's about magnitude. Bitcoin's price in 2010 was about ten cents. Fifteen years later, it hit a record high of $122,000. That's a 1.2 million percent return. There's no other asset in modern financial history with a trajectory like that. What started as a cypherpunk experiment is now being compared to Apple (AAPL) and Microsoft (MSFT) in size. A big reason behind that rise is scarcity. Bitcoin's 21 million supply cap is hard-coded. No CEO, no central bank, no stimulus committee can inflate it. That scarcity mirrors gold; but unlike gold, Bitcoin is digital, transparent and liquid around the clock. It's become a hedge, a reserve, and for many companies, a treasury asset. And companies are buying. As of this year, more than 265 private and public firms hold Bitcoin, accounting for about 4% of total supply. Bitcoin ETFs, collectively, hold around 6.6%. These are not niche allocations anymore. They're foundational bets on where the financial world is headed. Bitcoin Could Be Gunning for Apple Next To do that, it would need to jump another 15%–35%, depending on which company you're measuring against. That would push Bitcoin's market cap toward the $3 trillion range. And based on some of the current momentum, analysts are warming to that possibility. Several institutional forecasts now place Bitcoin above $140,000 by the end of the year, with some pointing toward $180,000–$200,000 if ETF demand holds strong. That's the bull case. But getting there isn't guaranteed. If ETF inflows slow, or if U.S. policy changes up once again, Bitcoin could lose steam. Its price is still sensitive to interest rate moves and macro conditions. And for all its mainstream progress, the asset remains volatile in both directions. At the time of writing, Bitcoin is sitting at $114,086.66.
Business Insider
6 hours ago
- Business Insider
ChatGPT-Maker OpenAI Seeks $500B Valuation in Share Sale
OpenAI is reportedly in early talks about a secondary stock sale that would let current and former employees sell their shares. With this sale, OpenAI is aiming for a valuation near $500 billion, marking a significant jump from a previous report that valued OpenAI at $300 billion. Notably, an employee stock share sale or a secondary stock sale is when current or former employees of a company sell their shares to outside investors. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. For context, OpenAI reportedly secured $8.3 billion in new funding earlier this week at a $300 billion valuation. This investment is part of the company's larger $40 billion fundraising target for 2025. More About OpenAI's Latest Share Sale According to market reports, investors such as Thrive Capital are exploring the purchase of employee-held shares in OpenAI's secondary stock sale. However, the talks are private, and sources requested anonymity as they are not authorized to speak publicly. If the deal moves forward, it would boost OpenAI's valuation by about two-thirds from its earlier $300 billion mark set during a $40 billion funding round led by SoftBank Group (SFTBY). This would further cement its position as one of the world's most highly valued private companies. ChatGPT Crosses 700 Million Weekly Users OpenAI's main product, ChatGPT, recently crossed a major mark of 700 million weekly users, up from 500 million in March. The company's annual revenue also reportedly reached $12 billion. The figure is more than double the $5.5 billion reported in December 2024, driven by strong demand for its AI tools from both consumers and enterprise users. On the other hand, OpenAI's rapid growth is leading to higher expenses. The company now expects to spend $8 billion in 2025, about $1 billion more than earlier estimates. Much of this cost is going toward building infrastructure, like renting computer chips and setting up data centers to handle its expanding AI models. Which Is the Best AI Stock to Buy, According to Analysts? Investors looking to buy into OpenAI in 2025 may be let down, as the company remains private and doesn't offer its shares to the public. Still, those interested in the AI space can consider other major AI-related stocks. To help with this, we've used TipRanks' stock comparison tool to compare several top AI companies. Users can also conduct further research to identify the most promising stock based on analyst ratings and other insights.
Associated Press
11 hours ago
- Associated Press
Eclipse Integrated Systems Unveils Next-Gen Quantum-Resilient MMDC Platform Powered by IBM Enterprise Storage
BRIDGEWATER, N.J., Aug. 5, 2025 (SEND2PRESS NEWSWIRE) — Eclipse Integrated Systems, Inc. ( ), a leading provider of enterprise-grade IT and cybersecurity services for small and mid-sized businesses, proudly announces a transformative upgrade to its flagship Micro Managed Data Center (MMDC) platform—now powered by IBM's latest enterprise-grade flash storage and encryption technology. This significant investment propels Eclipse's MMDC infrastructure into the future with advanced storage architecture, built-in quantum-resistant encryption, and the speed and scalability trusted by large enterprises—now made accessible to the SMB market through Eclipse's fully managed model. BOLDLY SECURING THE FUTURE, TODAY As cyber threats grow more sophisticated and quantum computing inches closer to reality, Eclipse has taken decisive action. The integration of IBM's advanced storage technology—equipped with high-performance flash modules and certified FIPS 140-2/140-3 encryption—positions Eclipse clients steps ahead of the curve. 'Today's SMBs face the same cybersecurity risks as enterprises but rarely have access to the same tools,' said Marc Buonocore, President of Eclipse Integrated Systems. 'With this upgrade, we're closing that gap—offering high-end infrastructure, managed end-to-end, so smaller organizations can operate securely and competitively without the cost or complexity.' 'We're delivering not only speed and reliability, but a hardware-anchored security model that defends against both current and next-generation threats—including those posed by quantum computing,' added David Rettagliata, Chief Technology Officer. 'This platform offers inline encryption, secure key management, and firmware integrity validation—all fully integrated into our MMDC service.' WHAT'S NEW WITH ECLIPSE'S MMDC INFRASTRUCTURE – Powered by IBM Enterprise Flash Storage — Ultra-fast performance with post-quantum resilient encryption – Hardened, Compliant Architecture — FIPS 140-2 and 140-3 certified, trusted in healthcare, finance, and government – Scalable, Secure, Fully Managed — Growth-ready without the complexity of hyperscale cloud platforms – Hybrid & Private Cloud Options — Custom deployments with low latency and no vendor lock-in – Flat-Rate Pricing — No surprise billing, ever END-TO-END IT SERVICES, SEAMLESSLY INTEGRATED – Endpoint security with real-time threat monitoring – Backup and disaster recovery with off-site redundancy – Compliance support and patch automation – Unlimited helpdesk and rapid on-site response A PLATFORM BUILT FOR WHAT'S NEXT This upgrade reaffirms Eclipse's position at the forefront of managed infrastructure for the SMB market—offering a future-ready foundation with the same data security posture found in enterprise and compliance-driven industries. To learn more, schedule a demo, or request a risk assessment: [email protected] | 800‑340‑0505 | LOGO link for media: NEWS SOURCE: Eclipse Integrated Systems Inc. Keywords: Web Hosting and ISPs, Eclipse Integrated Systems, enterprise-grade IT and cybersecurity services for small and mid-sized businesses, Micro Managed Data Center, BRIDGEWATER, N.J. This press release was issued on behalf of the news source (Eclipse Integrated Systems Inc.) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P128262 APNF0325A To view the original version, visit: © 2025 Send2Press® Newswire, a press release distribution service, Calif., USA. RIGHTS GRANTED FOR REPRODUCTION IN WHOLE OR IN PART BY ANY LEGITIMATE MEDIA OUTLET - SUCH AS NEWSPAPER, BROADCAST OR TRADE PERIODICAL. MAY NOT BE USED ON ANY NON-MEDIA WEBSITE PROMOTING PR OR MARKETING SERVICES OR CONTENT DEVELOPMENT. Disclaimer: This press release content was not created by nor issued by the Associated Press (AP). Content below is unrelated to this news story.
