IBM (IBM) experienced a surge in volume, with 19.52 million shares traded on Monday, 2.9 times higher than the 30-day average. The stock finished the day down 13.15%, extending losses in 2026 to over 24% from its 52-week high. IBM’s increased volatility makes it attractive for short-term profits, with heavy options trading volume in February. The recent tech selloff suggests IBM’s best days may be behind it, but potential economic accelerants, including a temporary tariff, could impact the stock’s future performance.
Warren Buffett’s Berkshire Hathaway (BRK.B) sold its entire IBM position in Q1 2018 after acquiring 64 million shares in 2011. IBM’s share price has gained about 52% since Buffett’s exit, with a total return of 10.7% annually. Analysts are lukewarm on IBM stock, with 11 out of 22 rating it a Buy. The tech sector has faced challenges in 2026, with IBM down 31% from its November high. Despite recent setbacks, Oppenheimer analyst Param Singh named IBM a top pick for 2026, projecting revenue and software growth.
Despite recent challenges, IBM may present a buying opportunity in 2026. Analysts see potential upside in the stock, with revenue and software growth expected. IBM’s free cash flow yield is 5.7%, potentially increasing to 6.5% with expected growth in 2026. Investors can play IBM’s dip by buying the stock, call options, or tech-focused ETFs with IBM holdings. While the stock faces headwinds, the company’s conservative projections and potential for free cash flow growth suggest IBM’s best days may not be over. Investing in the stock market can be profitable if you hold your investments for 3-5 years, according to a recent article by Will Ashworth. The article states that on the date of publication, Ashworth did not have any positions in the mentioned securities. The information provided is for informational purposes only. For more details, you can view the Barchart Disclosure Policy.
Read more at 1. Tesla reports record-breaking profits in Q3, with earnings of $1.86 per share and revenue of $10.74 billion. The electric car company’s stock price surges by 9% in after-hours trading. – Barchart
2. Apple announces the release of the highly anticipated iPhone 13, featuring improved camera capabilities, longer battery life, and a faster processor. Preorders for the new device exceed expectations, with sales projected to reach $100 billion. – Barchart
3. The Federal Reserve announces plans to start tapering its bond-buying program in November, signaling a potential interest rate hike in 2022. This decision comes as inflation reaches a 30-year high of 5.4%. – Barchart: Are the Best Days Over for IBM Stock? What Price Volatility Tells Us and How You Can Trade IBM Now.