IBM - International Business Machines Corporation

NYSE - NYSE Delayed Price. Currency in USD
142.22
+0.02 (+0.01%)
At close: 4:01PM EDT

142.22 0.00 (0.00%)
After hours: 4:57PM EDT

Stock chart is not supported by your current browser
Previous Close142.20
Open142.05
Bid142.22 x 1200
Ask142.07 x 800
Day's Range140.51 - 142.30
52 Week Range105.94 - 154.36
Volume1,933,490
Avg. Volume3,762,071
Market Cap125.989B
Beta (3Y Monthly)1.56
PE Ratio (TTM)14.68
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield6.48 (4.56%)
Ex-Dividend Date2019-08-08
1y Target EstN/A
Trade prices are not sourced from all markets
  • Benzinga

    Can Blockchain Solve Some Of The Aches Of The Cannabis Industry?

    Blockchain may be the solution for the many regulatory and oversight issues plaguing the cannabis industry — and the benefits have nothing to do with Bitcoin. A critical question every cannabis consumer will ask at some point is, “How do I know what I’m buying is exactly what it says it is?” In recent years, blockchain is fast becoming the answer — and it has nothing to do with cryptocurrency. Blockchain, a decentralized and transparent digital ledger, has found favor in the cannabis industry, most notably in tracking, tracing, and genome data.

  • IBM Collaborates With City of Los Angeles to Fight Cybercrime
    Zacks

    IBM Collaborates With City of Los Angeles to Fight Cybercrime

    IBM's AI platform IBM Watson, its emerging Blockchain technology and expanding security products is aiding it in proliferating the market.

  • History Suggests Nokia Stock Will Stay Stuck
    InvestorPlace

    History Suggests Nokia Stock Will Stay Stuck

    There's a simple bull case for Nokia (NYSE:NOK) stock at the moment. 5G rollouts worldwide should drive demand growth for Nokia products. The company itself is projecting sharp earnings growth in 2020. And NOK stock is cheap, at 11.7x the midpoint of 2020 EPS guidance.Source: RistoH / Shutterstock.com That said, there's also a simple bear case for Nokia stock: we've been here before. NOK stock seemingly has been a turnaround play for most of this decade - and had similarly impressive near-term catalysts along the way.None of those catalysts have reversed the trend. NOK stock is down 40% over the past five years, and has lost two-thirds of its value in the last decade. Maybe this time is different - but the history of the tech industry, too, suggests a difficult path to upside, even with a current valuation that looks rather cheap.InvestorPlace - Stock Market News, Stock Advice & Trading Tips NOK Stock Has Been Here BeforeAs I detailed earlier this year, Nokia has had chances to drive growth -- and reverse the narrative surrounding the stock. The $7 billion sale of the company's phone business to Microsoft (NASDAQ:MSFT) turned out to be a brilliant deal. Microsoft wound up losing at least $8 billion, and finally exited at a sale price of just $350 million. Yet the huge cash infusion did little for NOK stock. * 7 Momentum Stocks to Buy On the Dip Indeed, Nokia used that cash to help bankroll its acquisition of Alcatel-Lucent, which was to make the company a networking giant. That thesis didn't pan out. The company then re-entered the phone business. That plan hasn't worked.The story now is 5G. An admittedly strong second quarter earnings report contained positive news about customer retention in the shift from 4G. Nokia expects the full benefit to start hitting its P&L in 2020. And the staggered pace of the global rollout suggests that demand should continue for years to come.That said, Nokia already has admitted that it will struggle to hit its 2019 EPS guidance. Wall Street, for what it's worth, is betting against 2020 projections as well. Consensus of $0.40 is below the company's range of €0.37-€0.42 ($0.41-$0.45). The story is attractive -- but it's been attractive before. For this entire decade, Nokia simply hasn't been able to fulfill its potential. Is Nokia Stock an Outlier in Tech?To be fair, it's not easy to execute a turnaround, particularly in tech. There are no shortage of companies who, like Nokia, have struggled to adapt.There have been some winners. Microsoft itself is the most obvious one. It was only six years ago that Microsoft stock had traded sideways for a decade. Earnings growth had been minimal for years. Microsoft is now the most valuable company in the world.But Microsoft is a software play. In hardware, products can become 'commoditized'. And competition from China, in particular, is much stiffer. Indeed, Huawei has taken significant market share, with its political worries another potential tailwind for NOK stock.And in hardware, turnarounds have been difficult. IBM (NYSE:IBM) touched a nine-year low late last year. Oracle (NYSE:ORCL) has returned 9% over the past two years while broad markets have risen sharply. Blackberry (NASDAQ:BB) has been a perpetual "next year" story as both a hardware play and, more recently, a software play. Post-split gains for Hewlett Packard Enterprise (NYSE:HPE) have stalled out. Nokia rival Ericsson (NASDAQ:ERIC) is down 37% over the past five years, a performance in line with that of Nokia stock.There's really only old-line large-cap hardware play that has driven consistent gains: Cisco Systems (NASDAQ:CSCO). And that company has scale and market dominance that Nokia simply doesn't have.To be sure, history alone doesn't suggest that NOK stock can't rally this time. There is an opportunity in 5G. The hit to Huawei's reputation at least weakens a key competitor. And Nokia stock is cheap enough if guidance is hit. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars But NOK also is a classic "this time is different" case. And as the old saw goes, those are the four most dangerous words in investing. That's been true in the past for Nokia and many similar tech plays. It could be true this time as well.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post History Suggests Nokia Stock Will Stay Stuck appeared first on InvestorPlace.

  • Intensified Antitrust Scrutiny Could Weigh on AMZN Stock
    InvestorPlace

    Intensified Antitrust Scrutiny Could Weigh on AMZN Stock

    Many became concerned about Amazon (NASDAQ:AMZN) stock as an attack on Saudi oil fields sent oil prices (and by extension, delivery costs) soaring. However, a Wall Street Journal report has likely overshadowed that concern due to more intense antitrust scrutiny.Source: Mike Mareen / Shutterstock.com Since Amazon stock that has traded in a range for almost a year and a half, AMZN traders could face a longer period of frustration. Struggles Continue for AmazonBad news greeted Amazon as it began Monday trading, and not just because of higher oil prices. AMZN stock fell by over 2% in Monday trading following the WSJ story alleging that Amazon changed search algorithms in such a way that would boost its products. The algorithms also bolstered products that brought higher profits to the company. This move also supposedly caused turmoil within the e-commerce giant as both lawyers and engineers pushed back against these changes.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip If proven true, these actions could cause Amazon further pain as both U.S. and EU regulators have investigated the company for both operating a marketplace and selling products within that ecosystem. This action also contradicts years of statements from the company stating that its focus hinged on long-term profitability instead of steering customers to specific products for short-term gains.The previous quarterly report did not help matters. Amazon beat revenue estimates, however, they fell short on the bottom line and warned that Q3 would likely fail to meet expectations. This news sent AMZN stock back below the $2,000 per share level. It quickly fell close to the $1,800 per share level where it trades today.Worse, this continues the troubles for Amazon stock, which has become mired in a trading range. For almost 18 months, AMZN has traded at levels between around $1,300 per share and just over $2,000 per share. The current AMZN stock price of just over $1,800 per share places it toward the high end of the range. Can AMZN Stock Move Higher?The question for traders is, what can take AMZN stock beyond this range? Unfortunately for Amazon bulls, that path may have narrowed. To be sure, Amazon remains firmly positioned. Amazon Web Services (AWS) continues to produce the majority of company profits. It also maintains its lead over the likes of Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), and IBM (NYSE:IBM) in providing cloud services.Moreover, despite the profit warning for Q3, analysts expect earnings to grow by 17.1% for this year and 40.8% in fiscal 2020. This could support the current forward price-to-earnings (PE) ratio of just under 55 under normal circumstances. Expect Short, Medium-Term PainHowever, that PE could give traders pause with the antitrust concerns, at least on a short or medium-term basis. Due to the latest allegations, regulators will probably have a stronger case against Amazon. These accusations could lead to anything in between a slap on the wrist or an outright breakup.Moreover, traders have to assume that the company will remove the algorithms that boosted AMZN profits. I would also surmise that the earnings increases mentioned above will see downward revisions. Paying 55 times forward earnings may not pay off for investors under such circumstances. Final Thoughts on AMZN StockThough higher oil prices could hurt the company, intensified antitrust accusations will likely cause further pain for holders of AMZN stock. The allegations make penalties from regulators on both sides of the Atlantic more likely. Traders can also expect lower profits as antitrust pressure will force a change in the algorithms.Considering the scrutiny faced by Microsoft in the 1990s and early 2000s, I see a breakup as unlikely. Even if a split occurred, the breakups of Standard Oil and AT&T (NYSE:T) in the 20th century ultimately made the sum of the parts greater than the whole.However, shorter-term I see the WSJ story as a negative. From a stock perspective, it could lead investors to question whether they should pay almost 55 times forward earnings under these circumstances.Long-term, I expect AMZN stock will maintain its cloud and e-commerce leadership and post double-digit earnings growth. However, for now, investors should let the dust settle and try to buy later at a lower price.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Intensified Antitrust Scrutiny Could Weigh on AMZN Stock appeared first on InvestorPlace.

  • SAIC Wins $85M Deal to Offer IT Support Services to Anaheim
    Zacks

    SAIC Wins $85M Deal to Offer IT Support Services to Anaheim

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  • Is International Business Machines Corporation (NYSE:IBM) Trading At A 34% Discount?
    Simply Wall St.

    Is International Business Machines Corporation (NYSE:IBM) Trading At A 34% Discount?

    In this article we are going to estimate the intrinsic value of International Business Machines Corporation (NYSE:IBM...

  • IBM (IBM) Dips More Than Broader Markets: What You Should Know
    Zacks

    IBM (IBM) Dips More Than Broader Markets: What You Should Know

    IBM (IBM) closed at $142.48 in the latest trading session, marking a -0.83% move from the prior day.

  • Bloomberg

    IBM CEO Sees Amazon and Microsoft as Cloud Allies, Not Rivals

    (Bloomberg) -- In IBM’s vision of cloud computing, Amazon.com Inc. and Microsoft Corp. will be allies rather than rivals.Chief Executive Officer Ginni Rometty is betting on the hybrid cloud, which lets IBM offer services on corporate customers’ cloud-based servers as well as on third-party clouds operated by the likes of Amazon and Microsoft. International Business Machines Corp. has traditionally viewed these cloud giants as direct competitors, but it now aims to partner with them by supporting clients as they shift sensitive databases on to the cloud, regardless of which provider they use.Armonk, New York-based IBM has gone through many transformations in its 108-year history: shifting from punched card tabulating equipment to mainframe computers and now to the cloud.“This company has had to be reinvented many times,” Rometty said in an interview on Bloomberg Television’s CEO Spotlight show. “It’s something many other companies have yet to face. It is one thing to put out new products, but it is something else when the competitive landscape attacks your core business models and you have to develop a new one.”After struggling to keep up in the cloud market for more than a decade, IBM has switched to a hybrid cloud strategy, cementing its future with last year’s $34 billion acquisition of Red Hat, the Raleigh, North Carolina-based open source software provider.In the interview with BTV, Rometty said Red Hat would continue to operate as a separate and distinct business unit within IBM. “They must remain committed and neutral. They have to be on all our competitor’s platforms,” she said. “You have competition and cooperation -- and in this case Red Hat is a platform that goes across all of them.”To contact the reporters on this story: Olivia Carville in New York at ocarville1@bloomberg.net;Caroline Hyde in London at chyde3@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Molly Schuetz, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • New IBM mainframe can process 1 trillion web transactions a day
    Yahoo Finance

    New IBM mainframe can process 1 trillion web transactions a day

    IBM is out with its newest mainframe - z15. Yahoo Finance sat down with Tom Rosamilia, the Senior Vice President of IBM Systems and Chairman of IBM North America to hear how it'll change the industry.

  • Andrew Yang Brings Silicon Valley’s Upstart Spirit to 2020 Bid
    Bloomberg

    Andrew Yang Brings Silicon Valley’s Upstart Spirit to 2020 Bid

    (Bloomberg) -- It’s a classic Silicon Valley story: A shoestring operation disrupts the way business has traditionally been done, smashing experts’ expectations while drawing wary glances from sober-minded analysts.Except this time the product isn’t some new gadget or app, it’s a presidential candidate. Since he began his unorthodox campaign for the 2020 Democratic nomination, New York entrepreneur Andrew Yang has broken with a lot of traditional advice about campaign proposals, fundraising and public relations. And so far, it’s kind of worked.Endorsements from big names like Elon Musk, along with many small individual donations from software engineers—among the biggest givers to his campaign—have catapulted him into the middle of the winnowing pack of remaining Democratic candidates. He’s managed to win over the tech industry’s support while making its negative impact on society his central focus, and he’ll be on the debate stage on Thursday night, trying to convince everyone he can fix it. An outsider with zero political experience, Yang has outlasted a senator, two governors and three members of the House in the crowded Democratic field. He’s currently beating two senators, former liberal heartthrob Beto O’Rourke and Tom Steyer, the billionaire burning through his own cash while floundering in the polls. And Yang’s fundraising and poll numbers were strong enough to qualify for nationally televised debates three times. But it’s the next phase that proves trickiest, in both tech and politics. Yang, who is currently at 2.5% in a Real Clear Politics aggregation of polls, needs to scale up quickly, building more name recognition and financial support before the primary season starts. In short, it’s time for Yang to go public. His plan to do so involves a campaign centered on one big idea: a $1,000 check sent monthly to every U.S. citizen over the age of 18, no strings attached. But he’s also touting more than 150 other proposals such as legalizing marijuana, creating a postal banking system, paying college athletes, eliminating the penny and making Puerto Rico a state. It’s those ideas that make more traditional pundits view Yang as a fringe candidate—Yang is undoubtedly the first presidential campaign to have taken a stance on circumcision, even if he later backtracked on it. But an embrace of oddball causes may also be part of the secret to Yang’s success so far.Connor Farrell, a progressive fundraising consultant for Left Rising in Washington, D.C., said that Yang’s campaign features the kind of niche ideas with passionate fan bases that drive online donations. Those voters can be reached much more efficiently through free viral videos and memes than can, say, potential supporters of former Vice President Joe Biden who prioritize electability. And they’re easier to convert into small-dollar donors who can be tapped again and again, Farrell said.“Candidates who advertise about a specific issue have an easier time targeting the people that are likely to give to them,” he said. “You’ll make more money spending less money.” Yang recently sat down with Bloomberg in a cramped conference room in San Francisco to talk about his ideas. Surrounded by stacks of his book The War on Normal People, the former tech entrepreneur quickly launched into his case that the tech sector bears responsibility for many of America’s problems.Retail jobs vaporizing and shopping malls closing? That’s Amazon. Suicide and mental health issues on the rise? That’s Facebook. Journalism on the decline? Google’s ad network carries a bunch of responsibility for that.  And, he argues, there’s worse to come, as automation comes for clerical, call center, retail, food preparation and trucking jobs. “It’s not immigrants causing these problems,” Yang said, in counterpoint to President Donald Trump. “It’s technology.”And then he turns to his solution, which his campaign calls the Freedom Dividend but Yang informally describes as a “tech check.” To help pay for its estimated cost of about $255 billion per month, he wants to ditch corporate taxes on earnings and instead institute a value-added tax, or VAT, a tax on consumption. The VAT is used by a majority of developed counties, but is considered a non-starter in the U.S. for both parties: Republicans look at it as a tax hike, and Democrats believe it’s regressive because poor people’s consumption represents more of their income. Yang argues that if the tax were set at 10% (or about half the amount Europe charges) it would easily cover his $12,000 annual stipend for every American.While Yang believes the tech sector has created a lot of problems, he also thinks it’s uniquely positioned to solve some. Yang wants to allow voting by mobile phone using blockchain security. He favors net neutrality, letting consumers have a property right to their own data and increased investment in quantum computing and encryption technologies. He wants to bolster artificial intelligence to remain competitive with China and create a new agency to monitor the addictive nature of smartphones and social media.And, more importantly, he doesn’t rail against the companies’ creators themselves. It’s a neat trick: He vilifies the effects of innovation while absolving the innovators, saying that’s a job for government regulators. “This is a natural place where the government needs to come in and set parameters,” Yang told Bloomberg. “If you ask [tech companies] to self-regulate, they would literally be doing their shareholders a massive disservice if they were to scale back in any meaningful way.”To help garner support for such policies, Yang wants to create an agency to educate elected officials on artificial intelligence, data privacy, online ad networks and other technology topics they often don’t understand but are expected to craft laws to regulate. Such misunderstanding, he suggests, is what led candidate Elizabeth Warren to propose a break up of big tech earlier this year. “She’s recommending 20th century solutions to 21st century problems,” he said of Warren. “It’s not like breaking Google up into four mini-Googles would somehow improve the marketplace because no one wants to use the fourth best search engine. There’s a reason why we’re not using Bing.” Yang has early roots in the tech industry. He grew up in upstate New York, a self-described nerd who often spent more time with computers than people. His father, who worked at International Business Machines Corp. and generated 69 patents, encouraged his son’s early interest in technology. After Yang earned a law degree from Columbia University, he found he didn’t like being a lawyer and launched a startup allowing people to donate to celebrities’ favorite charities (it failed), then he drifted to a health care startup and eventually joined an online test prep company as an employee. By the time test titan Kaplan Test Prep bought it a few years later in 2009, Yang had risen to become its chief executive. He used part of his windfall to start a non-profit called Venture For America, matching recent college graduates with tech startups in sometimes-overlooked cities like St. Louis, Detroit and Pittsburgh.The people most likely to donate to Yang’s campaign have job titles like programmer, developer and software engineer. Many of them have jobs at Alphabet Inc.’s Google, Amazon.com Inc. and Microsoft Corp., but Yang also has a steady stream of contributions from workers with the same jobs at companies around the country, such as Capital One Financial Corp., Northrop Grumman Corp. and Walmart Inc.He's also gotten support from tech workers at small startups, ranging from companies developing artificial intelligence platforms to apps that teach "Unified Mindfulness," a meditation technique.Workers at tech firms contributed $321,664 to Yang through the end of June, according to data from the Center for Responsive Politics. That was less than the $1.3 million the sector gave to Pete Buttigieg, tops among Democratic presidential candidates, and about as much as Joe Biden, who is polling far higher but whose late entry into the race gave him less time to raise money.Like most of his rivals, Yang's big three locations for raising money are the New York, Los Angeles and San Francisco metro areas, but tech enclaves rank higher on his list than they do for other candidates. Seattle is fourth and the San Jose-Sunnyvale-Santa Clara metro area—the heart of Silicon Valley—is seventh.Richard Shank is one of those donors. A software developer in Beaverton, Ore., he was working on a project to automate school scheduling and listening to a Ray Kurzweil audiobook a few years ago when he had a realization that automation was going to cause a lot more disruption to the economy. After reading more on the issue, Shank, 50, settled on the universal basic income—sometimes called UBI, or in Yang’s case, the “tech check”—as a solution. He backed Vermont Senator Bernie Sanders in 2016 in part because he’d said favorable things about the idea, but when he heard Yang on Sam Harris’ podcast, Shank had finally found his candidate.“I was immediately sold,” he said. “UBI is probably the single most important issue in this race.” Shank listened to the audiobook of The War on Normal People and checked out every podcast interview with the Yang that he could find. He sets aside a portion of each paycheck to send to Yang’s campaign, and is about $1,000 toward his goal of hitting the Federal Election Commission maximum of $2,800.Neil Malhotra, a political economy professor at the Stanford Graduate School of Business, has studied political attitudes in Silicon Valley and the tech sector. One study of tech founders in Silicon Valley found that they favor low regulation to allow businesses to innovate but they also support redistributing wealth and are liberal on social issues. A separate study found similar attitudes among computer science majors at Stanford.“If you look at the Yang campaign, it’s very consistent with what we found,” Malhotra said.  Yang may not like social media’s effects on society, but his campaign is certainly benefiting from them. Online, fans have blended his image with funny and sometimes outrageous messages that spread fast on Twitter and Reddit as well as more controversial sites like 4chan. Yang’s campaign staff say they try to keep tabs on the ever-multiplying memes, but have no control over what gets published, where or how fast it spreads.  “As important as social media and everything is, the core driver is still email and fundraising,” said Digital Director Eric Ming, who leads the campaign’s efforts in social media, digital advertising, email and online engagement. He said he and his team don’t generally make memes, but see the power of the images in real time.When a meme strikes a chord, like the image of a boyfriend doing a double take on a new girl (Yang) while walking with his girlfriend (Trump), it spreads quickly, contributing to the candidate’s digital fame. One clip of Yang dancing the Cupid Shuffle in a women’s exercise class got 1.6 million views. A slow-motion video of Yang standing barefoot on his deck kicking off a water bottle cap without knocking over the bottle got 1.4 million. Another video shows supporters hoisting him above their heads, enabling him to crowdsurf his political rally like a rockstar.They may seem trivial, but like any media appearance, viral clips can drive voters to learn more about the candidate. These images play an outsized role in driving political decisions, according to Joel Penney, an associate professor at Montclair State University and author of The Citizen Marketer: Promoting Political Opinion in the Social Media Age.Penney described memes as amateur-produced political ads that played a “massive” role in helping Trump win the last election. Their power, he says, lies in their simplicity. It’s an easy way of consuming often complex information that’s easy to share, is topical and hits emotional triggers.“Memes get votes,” Penney said. “It’s not a one-to-one correlation, but it’s absolutely what’s shaping meaning and perceptions.” (Updates with donation information in the 24th paragraph. An earlier version of this story corrected a cost estimate for a universal basic income.)\--With assistance from Bill Allison.To contact the authors of this story: Lizette Chapman in San Francisco at lchapman19@bloomberg.netRyan Beckwith in Washington at rbeckwith3@bloomberg.netTo contact the editor responsible for this story: Wendy Benjaminson at wbenjaminson@bloomberg.net, Brad StoneFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • 5 Companies Growing Earnings
    GuruFocus.com

    5 Companies Growing Earnings

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    GuruFocus.com

    Warren Buffett and Apple

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  • IBM Stock Can’t Take a Ninth Year of More-of-the-Same
    InvestorPlace

    IBM Stock Can’t Take a Ninth Year of More-of-the-Same

    In the nearly-eight years Ginni Rometty has served as CEO of International Business Machines (NYSE:IBM), IBM stock has lost 23% of its value. From the shares' peak in early 2013, while her predecessor's initiatives were still in motion, the IBM stock price has fallen 33%.Source: JHVEPhoto / Shutterstock.com The performance of IBM stock, of course, merely reflects the company's financial performance. Its revenue peaked in 2011, and its profits peaked in the following year. Although IBM has managed to occasionally grow its top and bottom lines, they have continued to decline in the longer term.There's one underlying reason why IBM has failed to grow, causing International Business Machines stock to struggle, in an environment where seemingly every other technology giant has managed to do so. That is, the company is offering the wrong products at the wrong time at the wrong price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Battered Tech Stocks to Buy Now The more nuanced answer, however, is that Rometty, its CEO, isn't getting the job done. Missed OpportunitiesGinni Rometty is a well-polished executive who says all the right things, impresses in public forums, and has avoided the type of scandals that generally lead to CEOs being removed from their position.She's also been a loyal IBM employee, starting with the company in 1981 as a ground-level systems analyst. No one can deny she's earned her way to the company's top spot, having done many of the jobs other IBM employees are doing now.But she's been calling the shots for eight years. That's an eight-year stretch during which Amazon.com (NASDAQ:AMZN) became the world's cloud-computing leader … a business the e-commerce giant arguably had no business getting into. During the same eight years, Nvidia (NASDAQ:NVDA) became a go-to provider of artificial intelligence hardware, a business it practically stumbled into, at first.In both sectors, IBM could have made a big dent. Instead, it put out more more-of-the-same mainframes, and a Watson AI platform that hasn't always been impressive. Indeed, Watson has been frequently criticized as not being "real" artificial intelligence.Rometty didn't program the AI algorithms that Watson utilizes, nor did she assemble the hardware that runs it.She absolutely could have pushed the company in different directions, though. International Business Machines Is Out of TouchThe balance between the experience that tends to come with age and the understanding of "new" that tends to come with youth is a tricky one. Both are needed in the workplace, though how much of each is needed can vary as time passes.Perhaps those critics who argue the 62-year-old Rometty isn't quite plugged into the pulse of the tech world have a valid point.Meanwhile,asWill Ashworth pointed out last month, the average age of IBM's board members is 64.The internet didn't even become popularized until more than a decade after they graduated from college. Cloud computing didn't proliferate until more than a couple of decades after they graduated from college. Smartphones weren't widely popular until nearly three decades after they got out of college.That's not to suggest that anyone over the age of 30 can't learn about newer technologies. They can, and do.But the internet and cloud computing are now the centerpieces of how we live our lives, centerpieces that most people under the age of 30 don't remember living without. It's a cultural component that a group of people in their 60s can never fully understand.Consequently, it's likely this group of older adults -- the Board of Directors and Rometty -- are guilty of collectively misunderstanding the tech world and today's companies, and then supporting one another's misunderstandings.There's also a decent-sized chance that Rometty's 38 years with IBM are more of a liability than a benefit. After almost four decades of absorbing the same corporate culture, bad habits and a misguided vision of the future become extremely ingrained.Whatever the case, the argument that IBM's leadership isn't getting the job done holds water. The Bottom Line on IBM StockThat argument is just food for thought for the owners of IBM stock, and it's certainly not the first time the idea has been floated. It's worth floating again, however, because the market seems to perpetually avoid a serious discussion of Rometty's tepid results.Or, voiced in different terms, IBM may be doing the same thing over and over again and expecting a different result, which is, of course, the unofficial definition of insanity .On Oct. 25, Rometty will celebrate the eighth anniversary of her hiring as CEO. Perhaps that milestone will prompt some scrutiny and pressure from the key owners of International Business Machines stock .As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post IBM Stock Can't Take a Ninth Year of More-of-the-Same appeared first on InvestorPlace.

  • The Trade War Spurs China’s Technology Innovators Into Overdrive
    Bloomberg

    The Trade War Spurs China’s Technology Innovators Into Overdrive

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.In Shenzhen’s glitzy financial district, a five-year-old outfit creates a 360-degree sports camera that goes on to win awards and draw comparisons to GoPro Inc. Elsewhere in the Pearl River Delta, a niche design house is competing with the world’s best headphone makers. And in the capital Beijing, a little-known startup becomes one of the biggest purveyors of smartwatches on the planet.Insta360, SIVGA and Huami join drone maker DJI Technology Co. among a wave of startups that are dismantling the decades-old image of China as a clone factory — and adding to Washington’s concerns about its fast-ascending international rival. Within the world’s No. 2 economy, Trump’s campaign to contain China’s rise is in fact spurring its burgeoning tech sector to accelerate design and invention.The threat they pose is one of unmatchable geography: by bringing design expertise and innovation to the place where devices are manufactured, these companies are able to develop products faster and more cheaply.“Ninety percent of the world’s headphones are produced in China, 90% of China’s headphones are produced in Guangdong, and 90% of Guangdong’s headphones are made in Dongguan,” explains SIVGA co-founder and product chief Zhou Jian, an 18-year audio industry veteran who has done work for global brands like Sennheiser Electronic GmbH & Co., Sony and Bose. His company is based in Dongguan because, he says, “Dongguan’s industrial chain is near perfect.” Zhou estimates there are hundreds of specialist factories in the area focusing on a particular component, such as screws, and his network of contacts among those suppliers has been invaluable. It was “support from these good friends” that got SIVGA, short for Sound Impression Via Genuine Artwork, off the ground.Now employing more than 30 people and offering a premium brand called Sendy Audio, SIVGA sells a luxury pair of $599 headphones called Aiva. Featuring handcrafted wooden ear cups and intricately detailed metal grilles, the Aiva have shipped more than 2,000 units into a niche, high-margin market that’s usually reserved for U.S. boutique outfits like Audeze and Campfire Audio. “As far as we know, we are the only company in Dongguan with a woodworking department,” Zhou says, while also pointing out that at SIVGA “the development time is short and many decisions can be made on the spot.” This instant design responsiveness is a signature feature of China’s new tech upstarts, and Zhou sums it up with an old Chinese proverb: “small boats change course easier than big boats.”DJI is the pioneer that proved Chinese tech companies could aspire to be more than just manufacturing contractors or fast copiers. “DJI leads the industry with features like automatically avoiding obstacles in flight, which it implemented first,” notes Techsponential lead analyst Avi Greengart. “Rivals in the U.S., France and Taiwan have not been able to catch up.” DJI’s lead is based on the same geographic synergies as SIVGA’s. When a U.S. rival suffers a manufacturing hitch or defect, its ability to identify and react to the problem is hampered by the distance between its designers and manufacturers. DJI doesn’t have that problem, which has helped propel it to being the top drone maker in the world.“These are Chinese companies that want to be industry leaders and innovators. DJI and Insta360 are perfect examples of that movement,” says Anshel Sag, mobile industry analyst for Moor Insights & Strategy. “A big part of it comes from the entrepreneurial spirit of Shenzhen.”Like Dongguan, which this year saw a large new Huawei Technologies Co. campus open, Shenzhen is a nexus of component makers and suppliers eager to find new customers for their wares. The cacophonous Huaqiangbei bazaar in the city exhibits a wild array of gadgets from smartphone-electric shaver hybrids to neon-lit unicycles with Bluetooth speakers. That commoditized fray offers inspiration but also an impetus to rise above it with genuine innovation. The successful companies are the ones who make the most of the rabid production and iteration around them.“In Shenzhen, there’s a well-established supply chain system,” says Insta360 founder Liu Jingkang. “From a research perspective, in-house R&D may only contribute 60% of a product, the rest needs to be finished in factories.” The CEO of OnePlus, another company based in the city, has expressed pride in its ability to prototype new devices at great speed because he’s just a 45-minute drive away from its assembly lines.Even without being Apple Inc., Chinese companies are now building world-class, premium products, though China’s signature feature of undercutting the established market remains. Whether or not a Chinese company is first to a technology, it makes sure to be first to a breakthrough price.Backed by Xiaomi Corp. in 2014, Huami is responsible for creating the massively popular Xiaomi Mi Band, which has flooded the China market at a $20 price. The Mi Band offers most of the features of a Fitbit fitness tracker — including step counting and heart-rate monitoring — at a fraction of the cost. After expanding to sales in the U.S. and launching its own Amazfit brand, Huami is now shipping in excess of 5 million devices per quarter, and its chief executive talks openly about “taking out” at least some of its larger rivals, including Apple and Samsung Electronics Co.“The operating models for Garmin and other European and U.S. smart device vendors are flawed. Their retail price is very high,” Huami CEO and founder Wang Huang says. “You will only be able to sell very expensive products to a very small group of customers because mainstream and lower-end markets will be eroded by companies like us.”Evidence for the Huami chief’s words abounds in the smartphone market, where the top group of manufacturers is increasingly dominated by Chinese names like Xiaomi, Oppo and Huawei. 2018 saw these brands make major inroads into the European market, relying on better pricing and faster feature introductions. Xiaomi “consistently produces budget flagship phones with first-to-market implementations,” says Techsponential’s Greengart. Along with SIVGA, Huami and Insta360, they’re following in the footsteps of companies like Lenovo Group Ltd., which was among China’s early breakout successes after buying IBM Corp.’s PC business in 2004. Their global ambitions and innovation pose a serious threat to the leadership of a plethora of U.S. tech products in areas from design to functionality, whether they be GoPro cameras, Apple iPhones or HP laptops.China’s rapidly rising tech creators are not without commercial savvy. Many of them are planning to seek capital on Shanghai’s new trading venue for startups, locally known as the Star board. Ninebot Inc., the Xiaomi-backed outfit that acquired Segway in 2015, aims to raise $300 million there. In unicorn territory, the Google-backed Mobvoi, which creates natural language translation algorithms for its Wear OS smartwatches, is also said to be seeking a high-value listing on the Star market.Royole, the startup that earned a measure of notoriety by beating Samsung to selling the world’s first foldable device in 2019, has managed to secure a deal with Louis Vuitton that will see the two companies putting flexible screens on handbags of the future. Like Huami initially leaning on the Xiaomi brand to build itself up, Royole stands a chance to be a luxury goods player with the help of a bigger company. The differences between California’s Silicon Valley startups, which have tended to do a better job of marketing and deal-making, and China’s new generation of homegrown businesses are gradually disappearing.How and Why the U.S. Says China Steals Technology: QuickTakeAmerican critics, such as President Donald Trump, commonly point to a track record of Chinese companies copying features from abroad, and one of their bits of evidence is the way Apple’s iPhone software and design seem to be habitually recreated by Huawei, Xiaomi and others. There’s not much that a Western company can do in such situations. When Segway filed a complaint against a number of Chinese brands for IP violations, it ended up conceding the fight and getting acquired by one of its defendants.The observable change now is that a new generation of innovative companies aren’t waiting for someone else to show them the blueprint. China’s rapid ascent in innovation goes beyond anecdotal evidence from startups like DJI and Huami, and the country’s corporations now rank among the world’s most prolific patent applicants.“The trend of China moving to high-end manufacturing, research and design is unstoppable,” said Jia Mo, a Shanghai-based analyst with consultancy Canalys.To contact the reporters on this story: Vlad Savov in Tokyo at vsavov5@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    IBM Launches New Mainframe Generation to Combat Cybercrime

    (Bloomberg) -- International Business Machines Corp. is introducing a revamped mainframe server geared to combating cybercrime across public and private cloud services.Mainframes are the world’s most powerful computers and one of IBM’s signature hardware products. The latest model, called z15, launched Thursday and was designed with extra-secure privacy capabilities to help businesses shift critical data on to multiple cloud networks, known as hybrid cloud.“We read in the press every day about data breaches that happen because of cybercrime and the fact that our personal information and business information is being stolen and used against us,” said Ross Mauri, general manager of IBM Z, the company’s mainframe program. “This mainframe is specifically designed to completely thwart that.”Moving data between third parties is often the root cause of privacy breaches, Mauri said. Last year, about 60% of businesses reported they suffered a data breach caused by a vendor or third party, according to research by risk management company Opus and Ponemon Institute.Through z15, businesses are able to control who can access their data -- and revoke that access at any time. They will also be able to enforce their own internal privacy policies, creating different views of their data for different employees and teams, even if they are using multiple private and public cloud providers, the company said in a statement.“This has never been done before,” Mauri said. “From the privacy point of view, this is a game changer.”IBM created the first mainframe computer about 55 years ago. Today they run everything from credit card transactions to airline reservation systems for two thirds of Fortune 100 companies. Each mainframe is custom-built and can cost anywhere from $500,000 to $3 million, depending on a client’s business requirements. On average, IBM upgrades its mainframe Z system every 2 1/2 years.Mike Chuba, an analyst at Gartner, said IBM was moving beyond introducing its new mainframes as just faster and more efficient computers. Instead, it’s connecting the upgrade to the company’s overall business strategy, he said. “This is a big shift away from the traditional speeds and feeds focus of these announcements,” Chuba said.IBM is interlocking the z15 to the hybrid cloud, in a bid to boost its $34 billion acquisition of open source software maker Red Hat. After lagging in the cloud market for more than a decade, IBM is pegging its future to a hybrid cloud strategy that will allow it to offer services on companies’ private clouds and also third-party public clouds.The 108-year-old tech giant has been struggling to adopt cloud-related technologies and has weathered almost seven straight years of shrinking revenue. Mainframe sales make up about 10 percent of IBM’s overall sales, according to a 2018 annual report.To contact the reporter on this story: Olivia Carville in New York at ocarville1@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Molly Schuetz, Andrew MartinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Should Investors Buy IBM Stock This Month?
    InvestorPlace

    Should Investors Buy IBM Stock This Month?

    As a component of the Dow Jones Industrial Average, International Business Machines (NYSE:IBM) stock gets a lot of attention due to its high dividend yield, which is currently about 4.5%. In 2019, IBM was ranked by Forbes magazine as the world's twentieth most valuable brand.Source: JHVEPhoto / Shutterstock.com Year-to-date, IBM stock is up about 27%. Now may be time for investors to take some of the impressive paper profits they have made in IBM stock. * 10 Stocks to Sell in Market-Cursed September In the next several weeks, I expect the IBM stock price to be volatile and decline. However, long-term investors may regard a decline as an opportunity to buy into IBM shares. Here is why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips IBM Stock's Q2 ResultsOn July 17, IBM reported its second-quarter earnings. Its earnings per share beat analysts' average outlook, but its top line came in below their average estimate. Overall, Wall Street's reaction to Big Blue's quarterly results has been muted.IBM's top line continued to fall in Q2, declining to $19.16 billion from the $20 billion it took in during the same period a year earlier. The average top-line estimate was $19.17 billion. Q2 was IBM's fourth straight quarter without revenue growth.Net income was $2.5 billion, compared with $2.4 billion a year ago. Adjusted earnings of $3.17 per share was significantly ahead of the market's estimated earnings of $3.07 per share.The earnings result signaled to investors that the corporation would likely continue its generous dividend policy, as dividends reach 60% of free cash flow. IBM Stock's Cloud Business Gains SignificanceIn recent years IBM has become a diversified company with a wide range of worldwide offerings, including IT hardware, software, and services. Five segments generate revenue for IBM: * Cloud & Cognitive Software, which includes cloud and data platforms, cognitive applications and transaction-processing platforms. * Global Business Services (GBS), which includes consulting, application management and global process services. * Global Technology Services, (GTS), which includes infrastructure and cloud services and technology support services. * Systems, which includes systems hardware and operating systems software. * Global Financing, which includes financing and used equipment sales.Currently, IBM's largest business segment is GTS. Going forward, management is aiming for Cloud & Cognitive Software to become a leading driver of the company's revenue.In Q2 results, IBM CEO Ginni Rometty highlighted the growth of the company's Cloud & Cognitive Software segment, whose revenue increased 3.2% to $5.6 billion. The market forecast was $5.55 billion.However, the revenue of Microsoft's (NASDAQ:MSFT) Intelligent Cloud unit jumped 19% year-over-year, indicating that IBM is not yet able to compete with other dominant companies in this lucrative area.IBM's management has been looking to revitalize the company by making it a dominant force in open source and the cloud. In October 2018, IBM announced that it would acquire Red Hat (NYSE:RHT), a well-respected, open-source, enterprise-software maker for $34 billion.Earlier in the year, IBM finalized the purchase, but it has not yet included Red Hat's performance in IBM's most recent financials. Can IBM Stock Jump-Start Hybrid Cloud Revenue?Investors are hoping that IBM's acquisition of Red Hat will put IBM stock en-route to becoming a leader in the hybrid cloud sphere.Cloud computing has become a disruptive force in technology. Hybrid cloud environment uses a mix of on-premises, private cloud and third-party cloud services. By 2023, the global hybrid cloud market is expected to reach $138.63 billion.Well-known for its corporate version of Linux, Red Hat generates a great deal of revenue from the cloud. But will Red Hat improve IBM's fundamentals?Red Hat has significant competitive advantages. In several quarters, it may become a catalyst that will contribute to the growth of IBM's cloud business.However, a prolonged trade war between the U.S. and China could adversely affect the IBM stock price. Wall Street has also voiced concern that the global economy could be headed for a downturn.Therefore, the rest of 2019 could prove somewhat bumpy for IBM stock. Don't forget that IBM paid a hefty premium for Red Hat, and that the deal was one of the largest tech acquisitions of all time. On Aug. 2, IBM lowered its 2019 earnings guidance, citing an adjustment to its deferred revenue as a result of the Red Hat deal.Additionally, IBM now plans to suspend its share buybacks in 2020 and 2021 while it works on decreasing the debt it accumulated from the purchase of Red Hat.Going forward, investors are likely to pay attention to IBM stock's margins. If this acquisition does not translate into healthier margins, then the IBM share price could suffer. Where IBM Stock Price Is NowWhen investors look back at the earlier part of this decade, they may realize that IBM was not fully on top of developments in the tech space. Namely, International Business Machines did not take enough steps to participate in the cloud, an industry that is projected to grow exponentially in the next few years.Instead, management continued to concentrate on Enterprise IT, whose growth was and likely will be limited. IBM has also blamed external developments for the failure of its turnaround. As a result, IBM has generated plenty of investor skepticism of late. And the IBM stock price has reflected the sub-par decisions of its management.From April 2014 to December 2015, the IBM stock price fell from $200 to $120. In February 2017, IBM went back up to $180, only to hit $105.94 in December 2018.Then came the rally of 2019. On Aug. 2, IBM shares reached a 2019-high of $152.95.To the dismay of long-term shareholders, IBM shares suffered for the most part of August. On Aug. 23, IBM stock price hit an intra-day low of $128.83. This low was followed by a rapid move up in the past two weeks. Currently IBM stock is around $145.If you are an investor who pays attention to short-term technical charts, you may be interested to know that the charts of International Business Machines stock are painting an overbought picture and telling investors to be cautious. In other words, the shorter-term IBM stock chart points to volatility and some potential declines, possibly quite soon.Considering how much IBM stock is up so far in 2019 and especially in the past few trading sessions, owners of IBM stock should probably not hesitate to take some money off the table.The most likely scenario is that until the next earnings report in mid-October, IBM stock will trade between $125 and $145. I'd expect the $125 level to act as major support. On the other hand, $147.5 and then $152.5 are likely to act as near-term resistance. Bottom Line on IBM StockOver the past several decades. IBM has transformed itself from maker of computers to technology consultants. Now management is working hard to make the group a major cloud competitor. I am of the opinion that management will succeed in its quest in the long-term. However, it may be a few quarters before IBM generates consistent revenue and earnings growth again.In the near-term, I believe IBM stock price is likely to become increasingly volatile. As a result, if you are one of the investors with paper profits in the IBM stock, you may want to consider taking some of your profits. However, if you do not want to sell your IBM stock due to its dividends, then you may want to stay the course and ride out any short-term volatility.Alternatively, you may consider hedging your position. As for hedging strategies, covered calls or put spreads that expire on Oct. 18 could be appropriate, as straight put purchases are likely to be expensive due to the stock's heightened volatility.Finally, if you aren't already long IBM shares, you may want to remain on the sidelines until you see a better opportunity to buy the shares on weakness. That strategy would also enable investors to benefit from higher dividend yields.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Should Investors Buy IBM Stock This Month? appeared first on InvestorPlace.

  • 9 Stocks That Every 20-Year-Old Should Buy
    InvestorPlace

    9 Stocks That Every 20-Year-Old Should Buy

    [Editor's note: "9 Stocks That Every 20-Year-Old Should Buy" was previously published in July 2019. It has since been updated to include the most relevant information available.]Investing in your 20s is not only smart, it's exciting. The best part about creating a long-term portfolio, whether while going back to school or taking time off, is having the time to invest in undervalued companies.When looking at stocks to buy in your 20s, it's all about opportunity cost, which is spent in spades throughout your late-teens and as an aimless 20-something. Long-term investors have the benefit of time, allowing them to ride out turbulence others can't.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYour 20s are a time of future-gazing, and as an investor, you should choose adaptable companies capitalizing on current trends. Just remember, no matter how solid the investment, it will go through periods of ups and downs.Centering your portfolio around risky stocks, however, isn't a brick-by-brick blueprint toward retirement wealth -- you should also consider faithful, dividend-paying stocks. Just like knowledge, wealth grows slowly and steadily. * 7 Stocks to Buy In a Flat Market While analysts claim there are some stocks you can hold "forever," it's important to keep up with what's in your portfolio and make changes according to how each company develops.If you're a 20-something looking to capitalize on long-term growth and dividends, then the following 10 stocks to buy are worth a look. TripAdvisor (TRIP)Source: Shutterstock Shares of travel review site TripAdvisor (NASDAQ:TRIP) took a beating in 2017 and 2018 mostly on investor concerns about new entrants like Airbnb and new search tools from powerhouses like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) disrupting the space.However, TRIP stock has since made a significant comeback.Part of this comeback is the fact that TripAdvisor has something no other site in the online travel industry does: extensive data. Knowledge is power and TRIP definitely has that going for itself. The company is home to one of the largest online collections of traveler reviews, boasting over 500 million reviews encompassing seven million hospitality businesses.What's that mean exactly? For starters, access to mounds of data means TripAdvisor can better optimize the experience it offers its 415 million monthly users. That means pricing optimization, special offers tailored individually and stronger insights than competitors into their customers' needs.And that's only just scratched the surface of what it can do with such a robust database. Global tourism generated $7.6 trillion in 2014, and so long as it continues to grow, TRIP will continue beefing up its user database.For comparison's sake, Expedia (NASDAQ:EXPE) only brings in 84.5 million monthly users, while Priceline (NASDAQ:PCLN) has a fraction at 16 million.Having access to such robust data informs TripAdvisor's strategy, as the company recently reined in its InstantBooking feature in favor of giving users the superior experience of price comparisons that direct bookings to partner sites.According to Forbes, 70% of millennials say they're working just to pay for vacations and travel. Gen Z is becoming increasingly obsessed with travel from a social perspective. They want to go places and share their experience with others. TripAdvisor not only operates in the travel space, but its primary function is helping people find experiences others have enjoyed.Further, TRIP is expanding the functionality of its mobile site and app, both of which should help the firm gain traction with millennials. With the firm about to turn a corner, now would be a great time to add the stock to your long-term portfolio. Chevron (CVX)Source: Shutterstock While your 20s are definitely a time to make risky bets on growth stocks, it's important to round out your portfolio with stocks to build wealth slowly and steadily. That's why dividend stocks are attractive, particularly if they're consistent and sustainable. To that end, we have Chevron (NYSE:CVX), which is a dividend aristocrat.That doesn't mean it's walking around in fancy robes with its nose up, it means Chevron has increased its dividend annually without interruption for the past 25 years.Dividend aristocrats typically do whatever they can to maintain their status and that's certainly true in Chevron's case.Chevron currently yields just shy of 4%, which management continued to pay out even when crude prices were scraping the bottom of the barrel. With the firm on the rebound, investors will benefit from Chevron's cost-cutting measures and increased efficiency.Meanwhile, management is focused on improving profitability, even during the down cycle, which should be a boon for CVX stock as crude prices increase.Another thing to like about CVX is that it has a relatively small debt load with a quarterly debt-equity ratio of just 24%. Compare that to BP (NYSE:BP), for example, which has a debt ratio of 63%, and you can see that CVX is on the low end of debt accumulation in the oil sector.Chevron is a tightly run ship, giving the firm the ability to thrive in difficult times. That's good for long-term investors who might see oil cycle through another down period in the years to come. * 7 Deeply Discounted Energy Stocks to Buy Looking toward future growth, CVX is expecting to see its production rise to nearly three million barrels per day over the next 10 years. That figure takes into account Chevron's anticipated shale and capital projects as well as the firm's cost-cutting measures, which significantly reduced the firm's exploration potential.The firm's $200 billion market cap makes it one of the largest companies in the U.S. and a solid pick in the oil and gas sector. CVX offers stability and income growth, both of which will be useful to investors in their 20s. Facebook (FB)Source: Ink Drop / Shutterstock.com Investing in Facebook (NASDAQ:FB) now doesn't sound like an entirely new idea, but Zuckerberg & Co.'s days as merely a social media site are ending. I'm expecting to see the firm morph into an even larger tech powerhouse in the decades to come.Facebook has size and scale on its side, which is a huge advantage in the tech space. The company owns the two most popular messaging services in the world, Messenger and WhatsApp, and has yet to do anything about monetizing them.Simply allowing businesses to communicate directly with customers through these platforms would be a big moneymaker for FB advertising wise, but most expect that Facebook has bigger plans to harness the potential Messenger and WhatsApp hold.FB has also developed payment platforms, which would allow businesses to charge for services they offer via Facebook.Not only would that make Facebook's advertising business all the more profitable, because advertisements could more easily be converted into sales, but it would open up a new revenue stream for FB if the firm collects a fee for processing. Baidu (BIDU)Source: StreetVJ / Shutterstock.com Remember what I said about having time to absorb the ups and downs? Well, Baidu (NASDAQ:BIDU) is one of those stocks that you may have to absorb some downs with. The Chinese tech company has been compared to Google because the firm's search engine dominance resembles Google's early days.There is a huge amount of growth potential ahead for Chinese tech firms, especially a search engine like BIDU. Just over half of China's population has access to the internet, so the market is relatively new when you compare it to that of the U.S. Since the trade war can't last forever if time is your ally you have to at least consider BIDU stock.Not only that, but Baidu has been working to expand its autonomous driving technology in the race to create self-driving cars. The firm has already made its driverless car technology available for automakers to use and test in a bid to become somewhat of an autonomous car "operating system." * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off It's also likely that Chinese companies will get their cars on the road sooner because fewer people own cars in China. That makes for a higher adoption rate, as 75% of Chinese respondents indicated they would ride in a self-driving taxi, while only 52% of Americans would.What's more, China has a bigger auto industry and its government is hungry for large-scale projects. And while it seems counterintuitive considering China's complex system of roads, the real advantage is with navigation.The difficult conditions necessary to debut an autonomous vehicle in China means it will have a far easier time "porting" the system to the United States than the other way around. That means, for Baidu, international expansion will likely be much faster and less costly. Starbucks (SBUX)Source: monticello / Shutterstock.com Starbucks (NASDAQ:SBUX) is one of my favorite long-term buys because the company has proven itself to be an adaptable staple in markets all over the world. The company has weathered shifting consumer preferences toward independent, non-chain restaurants by incorporating local goods in their restaurants and revamping store appearances to reflect local cities.SBUX has also capitalized on the craft beer trend by creating its own Reserve Roastery where coffee lovers can sample different types of coffee and learn about the process. But all of that pales in comparison to SBUX's dominance in mobile.The Starbucks app is a textbook lesson in how to use mobile to enhance your business. Customers are able to upload money to the app and order and pay for their coffee in advance to avoid waiting in line; 30% of the firm's transactions take place on the app, a figure likely to grow even more as SBUX continues to invest in its mobile technology.Starbucks maintained an image millennials are comfortable with as the rest of the fast food industry struggled and the firm's focus on mobile has made it convenient to frequent. Netflix (NFLX)Source: Flickr via Mike K.Cutting the cable cord is gaining popularity in large part due to the growing popularity of streaming services like Netflix (NASDAQ:NFLX). The firm has already seen exponential growth over the past 10 years, causing some to wonder whether we're at the beginning of the end of NFLX stock's dominance.However, with a market cap under $1 billion, NFLX still has room to grow. If NFLX gains roughly 10% per year for the next 15, the firm would have a market cap of less than $150 billion, which isn't unreasonable when you consider Netflix still has a lot of room to run in foreign markets.Netflix is only just beginning to ramp up in countries around the world and the firm hasn't been able to turn out the kind of profit investors are looking for because it has to pay for content licensing and new content creation. * 7 Best Tech Stocks to Buy Right Now With that in mind, streaming is still a relatively new concept and as it becomes more common, NFLX will be establishing itself as a market leader around the globe. Waste Management (WM)Source: rblfmr / Shutterstock.com While admittedly not as shiny and new as stocks like NFLX, Waste Management (NYSE:WM) is a great stock to buy and hang on to because it operates in an industry almost certain to keep growing.Waste Management owns and operates landfills and collection trucks and negotiates contracts with local governments to collect and dispose of rubbish in the area. What's good about WM is the company's ownership of local refuse sites means the company doesn't suffer from a lot of customer turn-over.Not only that, we appear to be a long way off from changing the way we dispose of and recycle our garbage. Consumers are going to keep on consuming and producing waste companies like WM will deal with.Unlike tech firms, WM is unlikely to suffer from a major industry disruptor anytime soon, so it makes for a good stock to hold on to. Not to mention that WM offers a 1.74% dividend yield, so keeping it in the long-term is a great way to build wealth. General Motors (GM)Source: Linda Parton / Shutterstock.com U.S. automaker General Motors (NYSE:GM) is another good bet for a long-term investor because the company has a stake in all of the industry-changing trends on the horizon. GM bought up 9% of Lyft last year in an effort to get in on ride-sharing, a trend threatening to change the way people buy and use their cars.GM has also been a major player in the electric vehicle space, specifically designing mass-appeal cars like its Chevy Bolt. The car is eligible for a tax credit that brings its price down to the $30,000 level, making it accessible to a wider audience than most electric cars cater to.GM has also been working to develop driverless cars, and the firm's acquisition of Cruise Automation last year is proof it is a top priority. * 7 Tech Industry Dividend Stocks for Growth and Income GM has plans to create an autonomous electric car, a testament to management's belief that electric cars are the future of the auto industry. According to now-President Mark Reuss, creating a gas-powered autonomous vehicle is a wasted step. He believes that electric cars will soon dominate the roads, so autonomous driving software should be designed with that in mind.Reuss said that GM may be slower to develop autonomous driving software, but that's only because the firm is hoping to create technology that is designed for use in electric vehicles. International Business Machines (IBM)Source: JHVEPhoto / Shutterstock.com When you're in your 20s and looking for hot tech stocks to buy, International Business Machines Corp. (NYSE:IBM) doesn't exactly spring to mind, but the firm's tumultuous few years as a washed-up hardware firm have made IBM stock a bargain.IBM is doing some big things in the machine learning space and its Watson supercomputer has the potential to disrupt a wide variety of industries, from cybersecurity to health analytics. While IBM has yet to break out figures for Watson, its potential to slash healthcare costs and improve personalized medicine makes IBM a potential powerhouse.Watson may eventually be able to use massive databases of patient information to make connections between symptoms and diseases that medical professionals would have overlooked. This could revolutionize the way healthcare professionals diagnose, as well as save the healthcare industry loads of money by correctly identifying treatable conditions early on.But Watson isn't the only reason to scoop up IBM stock. The company has been successful so far in orchestrating its turnaround, and the company appears to be returning to growth as well as to have rounded a corner away from hardware and on to cloud computing and analytics.Those two segments make up more than half of IBM's revenue at this point, a good sign that the firm is on track to shift away from its legacy hardware business. The fact that its quickly growing strategic imperatives arm is becoming a much more substantial part of the firm's business is a good sign for future growth.Not only will shareholders reap the rewards of an IBM turnaround over the next decade, but the firm also pays out a 5.2% dividend yield, a sweet reward for riding out the turbulence. IBM generates an impressive amount of free cash flow and its 47% payout ratio means that dividend is stable and likely to increase in the years to come.At the time of this writing, Laura Hoy was long SBUX, FB and NFLX stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Heavily Discounted Stocks to Buy Today * My 7 Worst Stock Picks of 2018 The post 9 Stocks That Every 20-Year-Old Should Buy appeared first on InvestorPlace.

  • IBM (IBM) Outpaces Stock Market Gains: What You Should Know
    Zacks

    IBM (IBM) Outpaces Stock Market Gains: What You Should Know

    IBM (IBM) closed at $145.02 in the latest trading session, marking a +1.7% move from the prior day.

  • Mayo Clinic taps Google for AI partnership
    American City Business Journals

    Mayo Clinic taps Google for AI partnership

    The Minnesota-based clinic, which has a major operation in Phoenix, will use Google Cloud for advanced cloud computing, data analytics, machine learning and artificial intelligence.

  • Reuters

    UPDATE 1-IBM, Fraunhofer partner on German-backed quantum computing research push

    IBM is joining forces with a German research institute to explore the potential of quantum computing, backed by a government plan to invest 650 million euros ($717 million) over two years in wider research in the field. Berlin's support, sealed at a meeting on Tuesday between Chancellor Angela Merkel and IBM CEO Ginni Rometty, comes as Europe's biggest economy seeks to catch up to the United States and China in a global technology race.

  • IBM CEO Ginni Rometty Says IBM Was Built on Diversity and Inclusion
    Bloomberg

    IBM CEO Ginni Rometty Says IBM Was Built on Diversity and Inclusion

    Sep.17 -- Ginni Rometty, International Business Machines Corp. chair, president and chief executive officer, discusses the importance of diversity and inclusion in the workplace. She speaks with Bloomberg's Caroline Hyde on "Bloomberg Markets: The Close."

  • Why IBM CEO Ginni Rometty Is Betting Big on the Hybrid Cloud
    Bloomberg

    Why IBM CEO Ginni Rometty Is Betting Big on the Hybrid Cloud

    Sep.16 -- Ginni Rometty, International Business Machines Corp. chair, president and chief executive officer, discusses IBM's bet on the hybrid cloud, which lets the company offer services on corporate customers' cloud-based servers as well as on third-party clouds. She speaks with Bloomberg's Caroline Hyde on "Bloomberg Markets: The Close."

  • IBM launches newest Z15 mainframe
    Yahoo Finance Video

    IBM launches newest Z15 mainframe

    IBM is out with its newest mainframe dubbed the Z-15. The tech giant began production on it four years ago and worked with more than 100 companies to make it happen. For a 'First on Yahoo Finance' is Tom Rosamilia, the Senior Vice President of IBM Systems and Chairman of IBM North America.