Analysis of IBM share price for trading

New technology is undoubtedly one of the economic sectors that have experienced the strongest expansion over the last few decades. It is therefore normal that the major companies in this sector attract investors from around the world. Among the companies whose shares are quoted on the stock markets, and also the most popular company shares at present we see the American giant IBM. Here is some important practical information and advice for you to better understand its activities and thereby complete a correct analysis of the IBM share price.  

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About the IBM Company:

The IBM, or International Business Machines, Company is a giant American IT company that is one of the leaders of this market on the international level. Its activity, that generates a turnover of several dozen million Euros per year, covers a diversity of sectors but is mainly directed towards the supply of computer services but also includes the development of software, the manufacturing and sales of computer equipment and the financing of computer equipment.

Although the company achieves the larger part of its turnover in the United States it also covers Europe, the Middle East, Africa and Asia Pacific.


The major competitors of IBM:

IBM is one of the pioneers of new technology development and retains a prominent position in this sector. However, with the numerous and continuous technological advances made in this sector over recent decades an increasing number of companies are competing with this global giant. Here are the major competitors of the IBM group:

It is highly important that you are knowledgeable about these competitors if you plan to invest in the IBM share price as their financial results and economic news and events could strongly influence this asset price and this information will therefore be very useful to you for refining your strategic positions.


The major partners of IBM:

IBM has heavily invested in the creation of strategic partnerships in the new technology sector and in fact created IBM Partner World for this reason. This group aims to unite a number of different specialised companies to pool their knowledge and skills and thereby offer clients services that are specially adapted to their requirements.

In this way IBM has partnered with a number of internationally renowned companies such as CapGemini, Honda Cars, the PSA Group and Petrobas.

These partnerships have often been subject to controversy in the economic sector.

Of course, IBM is also the partner of numerous other smaller businesses.


Analysis of the IBM share price:

As with the majority of companies in this sector, the IBM Company suffered from the repercussions of the internet bubble bursting in the years around 2000 but for the last few years its share price, quoted on the Dow Jones Index, has followed a rising trend with a difference of 89% over the last 5 years.

Despite a slight drop in 2014, a long term rising trend is still forecast for this asset.


Financial and economical history of the IBM Company:

It can be beneficial to particularly look at the financial movements of the IBM Company over the last few years as these have of course highly influenced the movements in its share price on the stock markets. Here therefore you will find some key information and dates relating to the financial results of this group.

  • In 2004 the annual report of IBM announced a turnover of over 96 billion dollars. With no less than 330,000 employees throughout the world in more than 75 countries IBM in fact achieves the majority of its turnover in Russia, India, China and Brazil.
  • In 2006 the turnover of IBM amounted to over 91.4 billion dollars with a profit of 9.4 billion dollars. It was the systems, services and software that generated the most turnover in this year. The presence of IBM was strengthened on an international level with an increase in profits in China, Brazil and Russia. 
  • Between 2002 and 2007, IBM carried out investments that led to savings of 4.1 billion dollars with the transformation of its IT centres.
  • In 2009 IBM achieved a turnover of U.S. $95.76 billion with U.S. $13.43 billion profits. The company also announced that it wished to double its strength in a year without increasing its energy use. It is integrated in the Dow Jones and the Nasdaq.
  • In 2011, IBM recorded a higher stock market capital than that of Microsoft with 161 billion Euros due to a strategy that was launched in 2005.
  • In 2014, IBM recorded another negative quarter with worrying results. It therefore planned redundancies of over 112,000 employees in the United States. According to sources the exact number of redundancies envisaged by the group varies and the figures quoted are often contradicted by the management.

This financial data is of course susceptible to modifications over time and should therefore be monitored regularly.


Major stock market information concerning the IBM share price:

All the information we have provided up to this point has been related to the historical movements of the IBM share price, the activities of this American Company and its recent financial history which are necessary for a good understanding of the dynamics that influence this share price. But it is also important to take into account other more general data such as the following:

  • The total stock market capital of the IBM Company in 2017 amounted to U.S. $161,402.61 million.
  • The IBM share price is currently quoted on the Main Market of the NYSE in the United States.
  • The IBM company share price is also included in the Dow Jones Industrial Average stock market Index as well as the Nasdaq 100.  
  • Major shareholdings in this company are as follows: 8.46% by Berkshire Hathaway, 5.65% by the Vanguard Group, 5.30% by State Street Corporation, 2.94% by the California Public Employees Retirement, 2.73% by BlackRock, 1.73% by State Farm Mutual Automobile Investment Company, and 1.15% by Northern Trust Investments.


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75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.