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The 5 Best (And 5 Worst) Tech Stocks to Buy Now

Tech has been red-hot in 2017, and many success stories will continue for months and years to come. But not every sector stock is gold.

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Worst Tech Stocks to Buy: International Business Machines (IBM)

Worst Tech Stocks to Buy: International Business Machines (IBM)
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Back in May, Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.B) sold a third of his stake in International Business Machines Corp. (NYSE:IBM). He said:

“I don’t value IBM the same way that I did six years ago when I started buying. I think if you look back at what they were projecting and how they thought the business would develop, I would say what they’ve run into is some pretty tough competitors.”

I think Uncle Warren should’ve sold all of Berkshire’s shares.

IBM is a shrinking company that has not been able to transition effectively from its legacy technologies. Revenues have declined for 20 consecutive quarters, and the only thing the company seems good at is cutting costs to keep its cash flows humming. But if it can’t regain its core business or driving something new, the bottom line ultimately will suffer.

To its credit, IBM has invested in cutting-edge technologies such as artificial intelligence and IoT, but those categories are still in their early stages and can’t pick up the slack fast enough.

IBM is restructuring its existing business by moving aggressively towards mobile and the cloud. But so far, its efforts seem to be too little, too late.

Tom Taulli runs the InvestorPlace blog IPO Playbook and operates, which provides year-round tax services. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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