International Business Machines (IBM Stock) quote gains after commitment to telecom cloud services

NYSE:IBM rises 2.78% amidst broader market gains on optimism for the future.
IBM announces initiative to enter the 5G industry via telecom cloud services platform.
IBM gets higher on a day that the Dow Jones gains nearly 3%, or 834 basis points, after Pfizer’s COVID-19 vaccine results.

Stocks Reporter FXStreet

NYSE:IBM has struggled this year to develop a focus and keep pace with other tech companies that are seemingly growing at exponential rates. IBM added 2.78% to its stock price on Monday amidst a broader market surge which included a 3% rise by the Dow Jones Industrial Average. Shares of the New York-based computer company are still down over 15% in 2020 and despite Monday earnings, the stock price remains below the 50-day and 200-day moving averages, presenting a downward trajectory.

The big news from IBM this past week has been its plans to join the red-hot 5G industry by launching a cloud platform that will work alongside global telecom firms to create faster networks. IBM enters a crowded field that already includes industry heavyweights Microsoft (NASDAQ:MSFT), with its Azure cloud platform, and Amazon (NASDAQ:AMZN), with its AWS platform. IBM has already secured partnerships with Nokia and Samsung. The push into 5G has other implications for IBM as the new technology is thought to be a catalyst for improvements in AI and automation, two fields in which IBM is already heavily involved with its machine learning platform Watson.

IBM Stock Quote

2020 has been a year to forget for IBM, but 2021 can bring a possible drastic change to the company as we have never seen before. IBM CEO, Arvind Krishna, has decided to split the 109-year old company into two parts, both of which will trade on the public markets. The spin-off currently named NewCo will handle IBM’s IT services while the original company will focus on AI and its cloud platform. With the stock trading within reach of its 52-week lows, investors could look at this as a buying opportunity before the change occurs by the end of 2021.

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Stocks Reporter

FXStreet

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