IBM’s fundamental problem isn’t the servicing of debt. They borrowed last year when rates were low to bridge them thru 2024. IBM’s fundamental problem is two fold
- They refuse to acknowledge that management is exceedingly overmanned and is a drain on the company. It’s very difficult to redeploy managers effectively as their skill set has become stale. Better to just RA them.
- IBM refuses to exit non-strategic low margin/high overhead businesses. Until management comes to terms with the idea, that they can’t be all things to all companies anymore, IBM will struggle. IBM needs to execute on their newly adopted strategy (hybrid cloud/AI/SW modernization) within enterprises and divorce their legacy (low margin/high overhead) clients
I copied this @ovo+1mp6m9N3 into a new thread because it was very nicely and succinctly said.