IBM’s (NYSE:IBM) stock rose through the past week along with the market rally on hopes that the EU debt plan would ease the euro zone’s debt crisis. [1] While IBM’s stock benefited most from the broad market rally during the past week, Big Blue also reported solid earnings and announced its new CEO Virginia M. Rometty would take over next year.
See our earnings note IBM’s Earnings Show Strong Growth Potential in Software Business.
Timely Closing of Acquisitions
IBM announced in its third quarter earnings that it will be closing on acquisitions of Q1 labs and Algorithmics later this year. However the fact that IBM closed both these acquisitions well within time [2] [3] must have helped drive investor confidence.
Virginia M. Rometty elected IBM President and CEO
A major announcement from IBM came in on Tuesday as the firm announced that the board of directors has elected Virginia M. Rometty – currently IBM senior vice president and group executive for sales, marketing and strategy – to be the president and CEO of the company, effective January 1, 2012. She will succeed Sam Palmisano, who currently is IBM chairman, president and chief executive officer. Mr. Palmisano will remain chairman of the board. [4]
We currently maintain a $187 Trefis price estimate for IBM which is in line with the market price.
Understand How a Company’s Products Impact its Stock Price at Trefis
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