IBM Corp. (IBM)

History of the Company

IBM (International Business Machines), which also goes by the nickname  “Big Blue,” is a computer technology corporation that was created by a merger of three companies in 1911 to create CTR (Computing Tabulating Recording Company). One of those companies, the Tabulating Machine Company, founded by Herman Hollerith in the 1880s, used punch card technology that would streamline the U.S. census and become a cornerstone of IBM’s future growth. 

In 1924, the company name was changed to IBM, or International Business Machines. Thomas J. Watson, Sr., the president of the company, expanded IBM’s operations and established its company culture, including its famous “THINK” slogan and its Open Door policy. IBM weathered the Great Depression in the 1930s by investing in manufacturing and development instead of downsizing. This paid off when the Social Security Act was passed in 1935, because its huge surplus inventory made it the only available choice for the “biggest accounting operation of all time.” IBM led much of the development of modern computing; eventually marketing the personal computer in 1981. While IBM lost traction to Microsoft and Intel in the 1990s and took heavy losses, the company proved that it had the ability to adapt and recover, focusing on re-branding and constant innovation. 

IBM has the most patents of any American technology company. Its employees have been recognized with numerous awards including Nobel prizes and others. 

Trading IBM: What You Need to Know

  • A company’s annual report, as well as quarterly earnings reports provide great insights into the future performance of the company and whether trading is a good idea. While IBM’s earnings have slowed down, analysts believe that it is temporary and provides a window of opportunity to buy for long-term investors. 
  • Computer technology is constantly evolving, and companies that fail to innovate are left behind. IBM has proven that it can keep up and reinvent itself. IBM’s strong history of adapting to changing environments and technology makes it likely that the company will once again adapt and rise to the challenge. 
  • IBM today is shifting their focus to cloud services and improving its hardware products. This shift to new products and services is likely to generate new growth. 

Anyone who wants to trade IBM stock should carefully analyze the market conditions before trading.

Trade IBM