Perplexing
Having studied the chart and trading action of IBM for 50+ years, I usually have a pretty strong opinion and decent track record in handicapping what the stock does after the earnings releases. This time I don’t have a strong opinion, either way. Usually, there is a gap either above or below waiting to be filled and or a chart pattern that informs the outlook. This time neither, as the gap around 132-135 was filled on the last pullback. The only remaining gap is from the March 2020 bottom and that isn’t likely to be filled, unless, you count the coming spinoff of Kyndryl in a few weeks, which probably will get IBM to the 95-100 area and eliminate that final gap. As far as the earnings after Wednesday’s close, I have no clue whether the improvements will continue or they use this last quarter before the spinoff to clean up the books and maybe disappoint, since the stock will be lower from the spinoff, anyway? This is one report to just wait, watch and see what happens.