The Blue water is turning purple from all the blood and the activist investors can smell it a mile away.
http://www.investopedia.com/news/ibm-hpe-make-list-activist-investor-targets/
.
.
.
Wither Watson?
Take IBM, which last week reported second-quarter earnings that came in below Wall Street’s views on the revenue front but beat on the earnings side. The three-month period ended in June marked the 21st consecutive quarter that revenue declined at the Armonk, N.Y., technology company. According to The Deal, with double-digit revenue declines, the activists are circling, reportedly prompting Big Blue to tap two investment banks to come up with a defense to push back from any investors that demand change.
It doesn’t help that the IBM, which was at the forefront of artificial intelligence with its Watson platform, appears to be losing on that front as well. Earlier this month, Jefferies analyst James Kisner cut his price target to $125 from $135 a share, saying the company is “outgunned” in the war for AI talent and and argued that it's a problem that will only get worse. “Our checks suggest that IBM’s Watson platform remains one of the most complete cognitive platforms available in the marketplace today. However, many new engagements require significant consulting work to gather and curate data, making some organizations balk at engaging with IBM,” wrote Kisner in the report, which was covered by 24/7 Wall Street. (See also: How Much Money Would You Have if You Followed Buffett into IBM?)
.
.
.