IBM announces focus on AI, cloud computing – Wall Street Journal

American multinational IBM has announced it will be sharpening its focus on AI and cloud computing, sparking a rethink on its portfolio potential.
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In the early years after we launched it in 2014, IBM was a core holding in the BizNews share portfolio. But when Warren Buffett sold what was a major holding in early 2018, we followed suit. As the graph below comparing IBM with the S&P500 index shows, it was a smart move as the stock has massively underperformed. But it may be time to reconsider. The factors which initially drew us in (powerful market connections; strong focus on growth sectors) remain intact. Last night IBM announced it will be honing its focus on AI and cloud computing by unbundling much of its legacy business, roughly a quarter of the group. – Alec Hogg

IBM to spin off services unit to accelerate cloud computing pivot 

By Asa Finch and Dave Sebastian

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