Where Will IBM Be in 1 Year?
International Business Machines (NYSE: IBM) is at a critical juncture. Arvind Krishna, formerly senior vice president of the company's cloud and cognitive software division, took over as CEO on April 6, taking the helm at a time when declining revenue from legacy businesses has led to reduced profits and a stock that has fallen nearly 50% from its 2013 high.
Under previous CEO Ginni Rometty, the company made strides toward transitioning itself into a cloud company. This culminated in the $34 billion purchase of Red Hat in 2019. Now, with Krishna leading the company, this tech stock has effectively bet its future on the cloud. Hence, where IBM stock will trade one year from now will likely hinge on how well Krishna executes this strategy, though the COVID-19 pandemic has injected uncertainty into the picture. Still, with recent opportunities in the cloud coming to light, investors might find an opportunity in IBM stock.
Krishna goes into the CEO job at a difficult time for both the company and the country. The COVID-19 pandemic has brought many segments of the economy to a standstill. With no idea when coronavirus infections will level off or a timeline on a vaccine, IBM operates in an environment of uncertainty.
Source Fool.com
