IBM: What to Watch For This Earnings Season


Tech analyst Eric Bleeker takes a look at IBM, set to announce second-quarter earnings tomorrow. When companies experience economic uncertainty, they tend to scale back spending on discretionary tech outlays first, a troubling sign for IBM. Then there are other global concerns like emerging markets. While those markets drove IBM's growth last quarter, declining GDP growth in India and China threaten the company. Revenue is projected to be just about even with last quarter. Although IBM stock is quite pricey, it seems like a solid, stable player in the IT industry, even in rough conditions. Watch the following video to see Eric's thoughts on why even with global instability, IBM is a good long-term play headed into earnings.

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Eric Bleeker owns shares of EMC. The Motley Fool owns shares of EMC, IBM, and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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