Interesting to hear this from IBM, especially after years of shilling Watson and moving from being a growth business to the technology audit and share buyback model.
Apple and google still do share buy backs and dividends, despite launching new businesses
I can’t explain why they have a PE ratio of 36 though. That’s too high for a “returning capital” mature company. Their top line revenue growth is single digit %s per year. Operating income and EBITDA are growing faster, but there’s only so much you can cut.
You may be right on the quantum computing bet, though that seems like an extraordinary valuation for a moonshot bet attached to a company that can’t commercialize innovation.
Why do you say the market correctly prices it this way?