Comment by prodigycorp
4 months ago
also because the market (correctly) rewards ibm for nothing, so if they’re going to sit around twiddling their fingers, they may as well do it in a capex-lite way.
4 months ago
also because the market (correctly) rewards ibm for nothing, so if they’re going to sit around twiddling their fingers, they may as well do it in a capex-lite way.
I'm still flumoxed by how IBM stock went from ~$130 to $300 in the last few years for essentially no change in their fundamentals (in fact, a decline). IBM's stock price to me is the single most alarming sign of either extreme shadow inflation, or an equities bubble.
Why do you say the market correctly prices it this way?
IBM has been quietly leading the charge in offshoaring to India. Investors are happy with the reduced costs.
maybe acquiring Redhat improve the expectations? All these new fancy AI datacenter may be considering using Redhat/Centos.