International Business Machines Corp. (NYSE:IBM) has been disappointing investors over the last few months amid a lack of growth and zeal. IBM stock is down about 12% so far this year. The company’s Cloud business is being hammered by giants like Microsoft and Amazon. But it seems the company has finally something that could be called as a solid stock catalyst.
According to a latest report published by Juniper Research, IBM outranks Microsoft and several other corporations in the blockchain industry. Blockchain is considered as the next big thing in the technology world due to its immense capabilities. Blockchain technology allows decentralization, data integrity, and security. This technology is the centerpiece of the current cryptocurrency boom. It’s now used in other industries like retail and fleet management.
IBM is also investing heavily in the blockchain sector. The company’s investment division IBM ventures is gearing up to invest millions in blockchain startups. IBM’s platform Hyperledger is also getting intense popularity in the enterprise world. Hyperledger is a collaborative platform in which over 130 companies are taking part, including The Linux Foundation. In March, IBM launched IBM Blockchain, the first enterprise-ready blockchain service, which allows developers to create and host complex blockchain apps on IBM Cloud.
In June, Reuters reported that IBM was building a blockchain-based digital platform for major banks of Europe, including HSBC and Deutsche Bank. The intent of the platform is to simplify and secure digital transactions of businesses. The fact that major banks of Europe picked IBM as a technology provider and developer speaks volumes of the company’s growth prospects in blockchain services and product growth in the future.
In August, several major companies including Kroger, Walmart, Nestle and Unilever signed deals with IBM to use its blockchain platform to solve the problem of food contamination. IBM’s digital ledgers will help these retail and food companies to keep a track of food movement and expiry dates.
Another short term catalyst for IBM stock is the rising revenue amid a decline in the value of the US dollar. The company earns a lot of revenue from its operations outside the US. Therefore, we will see an improvement in IBM’s revenue in the coming quarters amid a free fall of the dollar.
Taken from: https://seekingalpha.com/article/4102516-ibms-revenue-catalyst