Good MorningEquity markets slipped on Monday after news from China upended the AI outlook. The new DeepSeek AI model is outperforming its competition and costs significantly less, raising questions about the amount of money spent on AI to date. However, analysts panned the news, stating confidence in the United States' position as the AI leader, focused on infrastructure and the AI end game. China and DeepSeek, on the other hand, are expected to struggle over the long term as their AI ability is constrained by GPU availability. NVIDIA fell more than 17% at the session's low.
The takeaway for investors is that volatility has entered the market, but a major sell-off is unlikely. The more likely outcome is a period of consolidation for the S&P 500 until the next critical earnings reports are out. That may not be long, with reports from Microsoft, Meta Platforms, Amazon, and Apple due this week. The crucial read, however, will be from NVIDIA in late February. Its growth is expected to slow but remain robust at over 70% YoY in addition to the 265% growth posted last year for the corresponding period. Featured: Forget Nvidia, This “Ghost Town” Company Holds the Key to the AI Boom (Ad) 
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Stocks | | | Rebounding tech stocks drove U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it.The S&P 500 climbed 0.9% to claw back more than half of its earlier drop. The Dow Jones Industrial Ave... Read the Full Story |
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Stocks | | | News from China upset U.S. markets this week and disrupted the frenzy that had built up around artificial intelligence.A company called DeepSeek announced that it had developed a large language model that can compete with U.S. AI giants but at a fraction of the cost. DeepSeek had already hit the top... Read the Full Story |
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The pharmaceutical industry is on the verge of a significant transformation due to the emergence of artificial intelligence (AI). Traditionally, drug development has been a lengthy, costly, and uncertain process. However, AI offers innovative solutions to accelerate drug discovery, resulting in fa... Read the Full Story |
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When market volatility compresses, as it did over the past five days, seasoned investors and traders should consider what could happen next to bring about a spike in volatility, such as unusual trading volume or options trading activity. This week’s volatile event, coming in to end the first... Read the Full Story |
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NVIDIA (NASDAQ: NVDA) stock plunged more than 10% on news from China AI that rocked the AI world. The launch of DeepSeek raises questions about the cost of computing and NVIDIA’s position in the data center and AI industry, but take it with a grain of salt. DeepSeek’s claim to have c... Read the Full Story |
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Investors often overlook the importance of mergers and acquisitions (M&A) in their investments. M&A can help to turbocharge revenue growth faster than organic revenue, which may increase in many cases. It can help diversify and expand a business's operations, increase its market share, bet... Read the Full Story |
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The consumer discretionary sector, represented by the popular Consumer Discretionary Select SPDR ETF (NYSEARCA: XLY), has recently reclaimed key moving averages, signaling resilience in its ongoing uptrend. These developments come amidst a notable shift in U.S. consumer sentiment, raising que... Read the Full Story |
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Markets | | | General Motors swung to a loss in the fourth quarter on an increasingly difficult environment in China, but still topped profit and revenue expectations on Wall Street. The automaker is also taking a proactive approach with the United States government on regulations and doling out generous profit-s... Read the Full Story |
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Markets | | | Oil and gas companies would be liable for damages caused by climate change -related disasters in California under legislation introduced Monday by two Democratic lawmakers.The proposal claims that the oil industry intentionally deceived the public about the risks of fossil fuels on climate change th... Read the Full Story |
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Tuesday's Early Bird Stock Of The Day International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York. | Should I Buy International Business Machines Stock? IBM Bull and Bear Case Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of International Business Machines was last updated on Wednesday, July 09, 2025 at 6:04 PM.
International Business Machines Bull Case -
The current stock price is around $290, which reflects a strong market capitalization of approximately $269 billion, indicating robust investor confidence.
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International Business Machines Co. recently reported earnings that exceeded analysts' expectations, showcasing its ability to generate revenue effectively, with a quarterly revenue increase of 0.5% year-over-year.
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The company has a solid return on equity of 37.43%, which suggests that it is efficient in generating profits from its equity investments.
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International Business Machines Co. has increased its quarterly dividend to $1.68 per share, representing a yield of 2.32%, which can provide a steady income stream for investors.
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Analysts have given the stock a consensus rating of "Hold," with several firms issuing "buy" ratings, indicating potential for future growth and stability in the stock price.
International Business Machines Bear Case -
Despite recent earnings growth, the company has a high price-to-earnings (P/E) ratio of around 49.87, which may suggest that the stock is overvalued compared to its earnings.
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The dividend payout ratio is currently at 115.66%, indicating that the company is paying out more in dividends than it earns, which could be unsustainable in the long run.
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One analyst has rated the stock with a "sell" rating, which may indicate concerns about the company's future performance.
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The stock has experienced fluctuations, with a 52-week high of $296.16 and a low of $174.45, suggesting volatility that could deter risk-averse investors.
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Recent downgrades from some analysts, including a shift from "buy" to "hold," may reflect a cautious outlook on the company's growth prospects.
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