IBM Is Beating Microsoft in This Emerging Tech

IBM Is Beating Microsoft in This Emerging Tech

Microsoft (NASDAQ: MSFT) is usually considered a better "mature tech" play than IBM (NYSE: IBM) for a few simple reasons: Microsoft pivoted from its aging OS and productivity software businesses toward higher-growth cloud services, and it consistently reports positive revenue growth. IBM tried to pivot away from its legacy businesses with higher-growth cloud services, but it's posted 21 straight quarters of year-over-year revenue declines.

The two companies' fortunes should continue to diverge -- analysts expect Microsoft's revenue to rise 8% this year and for IBM's to drop 3%. That's probably why Microsoft stock rallied more than 20% this year, while IBM's fell over 10%.

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Source: Fool.com