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 IBM: Expectations for Q2 2024 Results amid AI Investments and Strategic Acquisitions

 Key Points :
- IBM set to report Q2 2024 accounts with expectations for growth over Q1.
- Positive outlook thanks to AI investments and the acquisition of HashiCorp.
- Stock up with +13% performance since the beginning of the year, despite fluctuations.
- Important signs of recovery on the chart with key resistance breaking.

IBM prepares to release its second quarter 2024 financial results, with the market expecting positive signs after a mixed start to the year. Although first quarter revenues fell slightly short of expectations, Big Blue still posted a positive performance with a 13 percent increase since the beginning of the year.

 Expectations for the Second Quarter
For Q2 2024, forecasts indicate an increase in revenue from $14.46 billion in the previous quarter, with estimates targeting $15.61 billion, marking an 8 percent growth. Earnings per share (EPS) is also expected to rise, from $1.69 to $1.80.

 Growth Factors: AI and Acquisitions.
A crucial role in IBM’s growth is played by investments in Artificial Intelligence, particularly in the Watsonx.ai and generative AI units, which had already exceeded $1 billion in orders by mid-2023. In addition, the $6.4 billion acquisition of HashiCorp, approved by the board on July 8, is a strategic move to strengthen IBM’s Cloud Hybrid platform in the AI era.

Stock Performance.
IBM stock touched new three-month relative highs in July, marking a significant recovery after a correction in the second quarter. Since the beginning of the year, the overall performance has been positive at +13%. The chart shows important signs of recovery, with the break of the short-term trendline and the confirmation of a double low, reversal pattern that has pushed the stock toward the $187.40 target area.

 Outlook and Market Watch
The current scenario suggests a continuation of the bullish momentum, but it remains crucial to closely monitor market reactions to the release of the Q2 2024 accounts. IBM has shown intense price fluctuations throughout the year, suggesting a possible persistence of volatility in the coming months. Support and resistance areas will therefore be crucial in understanding the future direction of the stock.

Ahead of the financial results conference, investors are keeping a watchful eye on IBM’s strategic moves and potential surprises that could affect the market.