IBM (IBM): IBM is growing again and the long-term setup looks better, but the stock’s run has lifted expectations. The focus now is on Software turning strong orders into recognized revenue, and on AI showing up clearly in earnings, with Red Hat anchoring the mix and durability of that growth. Early-cycle mainframe strength and tight […]
Alphabet (GOOG): GOOG delivered a strong reassurance to investors with its 2Q25 earnings report, underscoring its market leadership and the successful execution of its AI-first strategy. The company reported robust consolidated revenue growth of 14% year-over-year, driven by double-digit gains across Google Search & other, YouTube ads, and Subscriptions, alongside a significant 32% surge in […]
IBM (IBM): IBM reported better than expected 1Q25 results and maintained guidance for 2025. However, the mix of underlying datapoints disappointed investors and the shares are trading down more than 5%. We think the decline is overdone and partially related to the excellent performance of IBM over the past 12 months. Expectations were elevated and […]
Alphabet (GOOG/GOOGL): GOOG reported mixed results and guidance for 4Q24 and 1Q25 relative to Wall Street and expectations. The shares dipped about 7% in response but remain up about 1% this year after gaining 14% in 4Q24 and 35% last year. 4Q results were strong and exceeded expectations in the advertising-supported business at Search and […]
IBM (IBM): IBM shares sold off following a mixed report for 3Q24. The selloff is mostly related to elevated expectations after the stock had doubled since October 2022, with over half of the gain coming since the start of 2024. Our original purchase of IBM just over five years ago was based on an investment […]
Alphabet (GOOG/GOOGL): GOOGL reported mixed results for 3Q23. The two dominant businesses, Search and YouTube, had better-than-expected revenue growth as advertising accelerated ahead of high expectations. On the downside, Cloud revenue grew more slowly than expected, up 22%, with management alluding to cloud spending optimization that has previously tripped up Microsoft Azure and Amazon AWS, […]
IBM (IBM): IBM reported an inline quarter with the normal give and take that any large, diversified corporation will experience. All guidance was reiterated with a slight boost to the growth rate for software revenue. Software was a little better than expected driven by double-digit growth at Red Hat for hybrid cloud and transaction processing […]
So far, we have found using Bard GAI to help analyze earnings report to be insightful and fun. Insightful to discover more about the capabilities and shortfalls of GAI and fun to try something different. Several more companies have reported since our last update, and we decided to stick with the same format for Part […]
Walmart (WMT): When we purchased WMT as a new long-term investment last June, our thesis was built on the idea that the stock offered both offensive and defensive characteristics. The defensive characteristics were important with the economy and market in an uncertain period amid high inflation and the Fed’s aggressive monetary policy tightening to slow […]
IBM (IBM): IBM reported good results in a tough macro environment, further increasing our confidence in the transformation underway at the company. Revenue and EPS exceeded expectations with strength across all segments of the company. Management raised 2022 revenue guidance and maintained free cash flow guidance. The only real negative in the quarter and outlook […]
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