{"id":30397,"date":"2024-09-18T23:56:00","date_gmt":"2024-09-18T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=30397"},"modified":"2025-09-23T12:28:10","modified_gmt":"2025-09-23T04:28:10","slug":"how-is-ibm-performing","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/","title":{"rendered":"How&#8217;s IBM performing these years?"},"content":{"rendered":"\n<p>I suggest you click on my previous post before dig into IBM performing: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/16\/ibm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does IBM make money? What&#8217;s next?<\/a>&#8221; Only in this way can we have a basic understanding of the company and business of International Business Machines (ticker: IBM).<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#The_battle_of_market_capitalization\" >The battle of market capitalization<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#Microsoft_vs_Intel\" >Microsoft vs. Intel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#Microsoft_vs_IBM\" >Microsoft vs. IBM<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#What_has_IBM_transformated\" >What has IBM transformated?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#Spinoff_and_divestiture\" >Spinoff and divestiture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#IBM_has_more_time_to_respond\" >IBM has more time to respond<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_battle_of_market_capitalization\"><\/span>The battle of market capitalization<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The market value of listed companies is the most objective way to judge business efficiency and company value, and it is most appropriate to use it to discuss IBM&#8217;s operations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Microsoft_vs_Intel\"><\/span>Microsoft vs. Intel<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>I have published articles on <a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;<\/a><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/21\/4-technology-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">The rebirth and fall of 4 major technology stocks in 10 years<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/31\/how-bad-is-intel\/\" target=\"_blank\" rel=\"noreferrer noopener\">How bad is Intel right now?<\/a>&#8221; A similar case was mentioned in these two posts. I compared Microsoft and Intel&#8211;twelve years ago, with the same market capitalization, one company ascended to the top of the world&#8217;s market capitalization, and its stock price increased 12 times. <\/p>\n\n\n\n<p>Another company, Intel, has fallen from the global semiconductor throne, repeatedly giving up all the crowns it once held. What&#8217;s the current situation at Intel? Interested readers please click on my article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/31\/how-bad-is-intel\/\" target=\"_blank\" rel=\"noreferrer noopener\">How bad is Intel right now?<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/25\/will-intel-go-bankrupt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Will Intel go bankrupt?<\/a>&#8221; These two posts will give you a better understanding of the tragic situation of this company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Microsoft_vs_IBM\"><\/span>Microsoft vs. IBM<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now let&#8217;s take a look at IBM, the protagonist of this article. 12 years ago, IBM&#8217;s market value was about the same as Microsoft&#8217;s, and its revenue was greater than the latter&#8217;s (please click on my comparison chart of revenue between Microsoft and IBM over the past ten years in  &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/16\/ibm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does IBM make money? What&#8217;s next?<\/a>&#8221; . You can see IBM clearly at a glance.<\/p>\n\n\n\n<p>But what now? IBM&#8217;s current market value is only one-sixteenth of Microsoft&#8217;s!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_has_IBM_transformated\"><\/span>What has IBM transformated?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Spinoff_and_divestiture\"><\/span>Spinoff and divestiture<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Just like when you click on my &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/31\/how-bad-is-intel\/\" target=\"_blank\" rel=\"noreferrer noopener\">How bad is Intel right now?<\/a>&#8220;As seen in &#8220;Intel has been forced to be a seller, split up (please click &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/12\/intel-is-spinning-into-five\/\" target=\"_blank\" rel=\"noreferrer noopener\">Intel is spinning into five separate companies<\/a>) and suspended dividends to raise the company&#8217;s cash flow, and is currently developing , company is fighting to defend its survival, as corporate vultures and activist investors from all sides are taking advantage of the sharp decline in Intel&#8217;s stock price to make various plans for acquisitions or acquisitions.<\/p>\n\n\n\n<p>IBM is better than Intel, and IBM is much larger than Intel. It is a typical diversified technology group, unlike Intel which only focuses on the semiconductor business. But basically, I have been a seller all the way, selling valuable parts. At best, it means removing the waste and retaining the essence, but at worst, it means poor management of the company. <\/p>\n\n\n\n<p>The more famous ones are the <a href=\"https:\/\/investors.kyndryl.com\/shareholder-resources\/spinoff-information\" target=\"_blank\" rel=\"noopener\">spin-off of Kyndryl (ticker: KD) <\/a>and the <a href=\"https:\/\/www.extremetech.com\/computing\/192430-ibm-dumps-chip-unit-pays-globalfoundries-1-5-billion-to-take-the-business-off-its-hands#:~:text=After%20months%20of%20will%2Dthey,making%20unit%20off%20its%20hands.\" target=\"_blank\" rel=\"noopener\">sale of the wafer manufacturing department to GlobalFoundries (ticker: GFS)<\/a>. For details, please click &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/16\/ibm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does IBM make money? What&#8217;s next?<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IBM_has_more_time_to_respond\"><\/span>IBM has more time to respond<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The difference between IBM and Intel is that Intel has all happened in the past 20 years, while IBM has happened in the past 40 years. IBM&#8217;s market capitalization was very large forty years ago, and its stock price showed a slow decline trend, rather than a sharp decline; this gave IBM time to calmly respond. However, in the past five years, especially this year, Intel has often experienced plunges of more than 10% many times, which easily frustrated the management, leading to today&#8217;s situation.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"178\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/09\/IBM_Transformation-Custom.jpg\" alt=\"IBM performing\" class=\"wp-image-30398\"\/><figcaption class=\"wp-element-caption\">credit: Ideogram<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/09\/22\/seagate-comeback-ai\/\">Seagate comeback thanks to AI, No 1 S&amp;P 500 perform stocks YTD<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/08\/deepseek-rout\/\">DeepSeek routed the global AI and stock<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/12\/chinese-ai-companies\/\">Chinese AI progress and top companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/08\/satya-nadella\/\" target=\"_blank\" rel=\"noreferrer noopener\">Satya Nadella brings Microsoft back to glory<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/18\/how-is-ibm-performing\/\">How&#8217;s IBM performing these years?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/19\/ibm-decision-making\/\">IBM decision-making mistakes in the past 4 decads led to today&#8217;s outcome<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/16\/ibm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does IBM make money? What&#8217;s next?<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;<\/a><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/21\/4-technology-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">The rebirth and fall of 4 major technology stocks in 10 years<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/31\/how-bad-is-intel\/\" target=\"_blank\" rel=\"noreferrer noopener\">How bad is Intel right now?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/10\/18\/intel-decisions\/\">A series of Intel decisions led to where it is today<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/25\/will-intel-go-bankrupt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Will Intel go bankrupt?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/12\/intel-is-spinning-into-five\/\" target=\"_blank\" rel=\"noreferrer noopener\">Intel is spinning into five separate companies<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/18\/institutional-imperative\/\">Institutional imperative &#8211; the good, bad, and ugly<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/20\/oracles-oci-ai\/\">Oracle\u2019s cloud computing and AI finally recognized<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/23\/erp-oligopoly-sap\/\">ERP oligopoly SAP succeeds in AI and cloud transformation, How SAP makes money?<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/26\/overlord-of-cloud-computing\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Microsoft, the dominant overlord of cloud computing<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/24\/hpe-on-enterprise\/\">HPE expertizes on enterprise technology services<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/04\/value-and-problem-palantir\/\">The value of Palantir, pros and cons of Palantir investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/14\/palantir-introduction\/\">What kind of company is Palantir?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>How&#8217;s IBM performing? 12 years ago, IBM&#8217;s market value was about the same as Microsoft&#8217;s, But what now? IBM&#8217;s current market value is only one-sixteenth of Microsoft&#8217;s!<\/p>\n","protected":false},"author":1,"featured_media":30398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[493,1336],"tags":[518,168,41,843,3],"class_list":["post-30397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operating-efficiency","category-critical-decision","tag-gfs","tag-ibm","tag-intc","tag-kd","tag-msft"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/30397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=30397"}],"version-history":[{"count":23,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/30397\/revisions"}],"predecessor-version":[{"id":38827,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/30397\/revisions\/38827"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/30398"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=30397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=30397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=30397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}