And the two reports were vastly different in reactions and profitability. IBM lost about seven percent today and never recovered from their tumble this morning. Apple had a strong day and after their earnings report had a strong after hours movement up in price.
Investors did not like the report that IBM had an earnings miss and selling its chip business. It was probably good that IBM sold the chip business and can use those resources more efficiently. Any investor of IBM is hurting today. Although, I still think IBM is an okay investment, it will be steady and maybe they can reinvent themselves to be leaner. They are more attractive now at the lower price.
Apple had a very good earnings report with high margins as expected, huge numbers of iPhone sales, and less than stellar iPad sales. Apple has mountains of cash and will use the cash horde to buy other companies to increase revenue streams and continue to make great new products. Not everyone will work but some will become household staples.
Apple is more revolutionary than IBM and that is partly from the fact that Apple is a newer company and has created a culture of trying new things and pushing the boundaries. Now they make different products and only operate as competitors in a few places. It really depends if you as the investor think that Apple can continue to reinvent the wheel or if IBM can turnaround to become more nimble.
I would look at other tech firms than these two. Both are consistent and large. I'm searching for the next Apple.
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