Technology giant IBM (NYSE:IBM) is in talks to acquire HashiCorp (NASDAQ:HCP), a provider of multi-cloud infrastructure automation software, the Wall Street Journal reported. The move will likely strengthen IBM’s hybrid cloud offerings.
IBM is pivoting towards a hybrid cloud and artificial intelligence (AI)-focused business model to capitalize on the strong demand for these technologies. The company has developed two platforms to strengthen its offerings. The Watsonx platform is designed to advance its AI capabilities, and Red Hat OpenShift focuses on facilitating hybrid cloud solutions.
Additionally, it is focusing on acquisitions to expand its product portfolio. Last year, the company spent over $5 billion to acquire nine companies and fortify its product offerings. It remains to be seen how the deal with HashiCorp develops. Meanwhile, IBM will release its Q1 2024 financial numbers after the market closes.
IBM – Q1 Expectations
Analysts expect IBM to post revenue of $14.52 billion in the first quarter, reflecting a slight year-over-year increase from $14.3 billion in the prior-year quarter. Meanwhile, Wall Street expects IBM to post earnings of $1.59 per share in Q1, up about 17% year-over-year.
Is IBM Stock a Buy, Sell, or Hold?
Wall Street is sidelined on IBM stock ahead of its Q1 earnings. IBM stock has five Buys, five Holds, and two Sell recommendations for a Hold consensus rating.
IBM stock has gained over 52% in one year. Consequently, analysts’ average IBM stock price target of $192.58 implies a limited 5.70% upside potential from current levels.
