IBM Acquires Red Hat for $34 Billion

$34 Billion Cash Deal That Can Shake A $1 Trillion Industry

With consistent declining revenue numbers year over year - IBM looks to compete against the heavy hitters in the cloud market:  Amazon, Microsoft, Google.  

The new acquisition looks to take on the cloud market. They'll need to have a speedy integration process and be flexible. 

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1 hour ago, CMOP said:

$34 Billion Cash Deal That Can Shake A $1 Trillion Industry

With consistent declining revenue numbers year over year - IBM looks to compete against the heavy hitters in the cloud market:  Amazon, Microsoft, Google.  

The new acquisition looks to take on the cloud market. They'll need to have a speedy integration process and be flexible. 

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Stocks trading at 5 year low. Good time to get in, possibly. 

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17 hours ago, CMOP said:

Stocks trading at 5 year low. Good time to get in, possibly.

I'm interested too. I have two concerns...  One, they appear to have paid a premium price for Red Hat, leading to my 2nd concern.  Is the current leadership capable?  Why is it at a 5 year low?,,, and still dropping a bit more today.  

The article went on to say the deal is a bargain relative to the potential gravy to be sopped up once they are the cloud provider.  And I agree.  But if Leadership isn't there, then there's no execution of the good idea.

I believe these to be more important numbers than others that are offered (Profits/earnings) ... but I don't know if these are good ratios.  I'm asking opinions [please]  

P/E Ratio 18.68                                   Forward P/E (1y) 8.66

I was disappointed to not here any mention of block chain tech, as I am still crossing my fingers is the beginning of the next tech/industrial revolution that catapults the world out of hunger and poverty.

Hmmm... crossing fingers, ....might have trouble finding support for that investment strategy.

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