IBM's (NYSE: IBM) stock declined about 5% over the past three years as the S&P 500 rallied roughly 50%. Many investors shunned the aging tech giant as it struggled to generate stable revenue growth.
The ongoing declines of IBM's business software, hardware, and IT services divisions offset the growth of its newer cloud-oriented divisions, and investors lost patience with its sluggish turnaround efforts.
IBM tried to support those efforts by acquiring Red Hat for $34 billion in 2019. Red Hat's revenue rose 18% in 2020, but IBM's total revenue still fell 5% as it struggled with pandemic-related disruptions.
Source Fool.com