IBM and many other blue chip firms have been borrowing money at a ridiculously cheap rate. Those rates will be rising in the coming weeks and months. Some of the blue chip firms have stagnant sales, and are using some of the borrowed money to buy back their own stock. We have seen a ton of buyback programs withing the big cap stocks. These firms are making their EPS numbers on lower revenue, and this is how some of these firms are doing it.
One thing to consider in an environment of rising rates is: will rising rates negatively affect firms with stagnant sales, and relying on buyback programs?
Classic shill. If shareholder value goes down, it is somebody else's fault. If it goes up, HEY, GINNY IS A GENIUS AND FIRED ALL THAT DEADWOOD. Cost of borrowing, however, will be going up and that squeezes everything.