Wall Street Breakfast IBM fails to shake DOGE worries
5 snips
Apr 24, 2025 IBM faces challenges as consulting woes overshadow strong software growth. The discussion shifts to whether it's time to invest in gold after its largest drop in four years. Exciting news emerges from Tesla as they kick off tests for their robotaxi initiative. Additionally, whispers about Trump considering auto tariff relief and insights on Netflix's ambitions for a staggering $1T valuation add to the intriguing mix.
AI Snips
Chapters
Transcript
Episode notes
IBM Software Growth vs Consulting Decline
- IBM's software segment, especially Red Hat, showed strong growth while consulting declined.
- Consulting is vulnerable to economic uncertainty and discretionary spending cuts, affecting earnings guidance.
IBM Revenue Beats, Cautious Outlook
- IBM beat revenue estimates with $14.54 billion but kept its mid-single digit growth forecast.
- Uncertainty in consulting and certain software areas may keep the stock range-bound.
Gold's Big Drop Yet Safe Haven Appeal
- Gold dropped sharply as investors moved to risk assets after easing trade and Fed worries.
- Despite recent declines, gold remains attractive as a safe haven due to central bank demand.