IBM Stock Reacts to Mixed Q3 Earnings Report and AI Advancements

International Business Machines Corporation (IBM) released its third-quarter earnings report on Wednesday, October 23, 2024, which had a mixed impact on the company’s stock price. Analysts had expected IBM to report quarterly earnings of $2.23 per share, up from $2.01 per share in the same period last year. The actual earnings figures, however, did not fully meet these expectations, leading to a slight decline in the stock price.

The company is anticipated to report revenue of $15.07 billion for the recent quarter, an increase from $13.42 billion in the year-ago period. Despite the revenue growth, the stock market reaction was muted, with IBM shares gaining only 0.2% to close at $232.25 on Tuesday.

IBM has been making significant strides in artificial intelligence, recently unveiling Granite 3.0, its most advanced family of AI models, during the annual TechXchange event. This development is part of IBM’s strategy to integrate AI into its hybrid cloud solutions, but it has not yet translated into immediate stock gains.

Investors are also eyeing IBM’s dividend yield, which stands at 2.88% with a quarterly dividend of $1.67 per share. To earn $500 per month from dividends alone, an investor would need to hold approximately 898 shares, valued at around $208,561. This highlights the appeal of IBM’s dividend for income-seeking investors, despite the current stock price volatility.

The mixed earnings report and the ongoing integration of AI technologies will continue to be key factors influencing IBM’s stock performance in the coming months.