International Business Machines (NYSE:IBM) is in a slump and the global tech giant turns to blockchain for a much-needed boost to turn things around. While it is still a force to reckon with, recently, investors worry that it hit a growth problem. The stock price, which has been on a decline over the past five years, is now at less than $170 per share.
The company registered a $22.5 billion revenue in the last quarter of 2017, which even beat analysts’ expected revenue of $22.1 billion. With this, the outlook of IBM is high as experts see the company’s investments in cloud computing and “big data” analytics finally paying dividends. Also, IBM has now entered the blockchain ledger in cloud computing.
This makes IBM stock lucrative at the moment. Portfolio manager for Interactive Brokers Asset Management Vahan Janigian believes the company just lacks growth as evident in stagnant performances in the past years. However, he thinks things are about to change because of a strong cash flow, earnings, and large dividends.
“Growth plummeted because management was slow to recognize and exploit high-growth opportunities. But that seems to be changing,” he added.
This is why IBM’s decision to venture into blockchain is the best decision at the moment. Blockchain offers a new area of growth for IBM which it sorely lacks.
So far, IBM has invested in the internet of things and artificial intelligence. Welcoming blockchain in their fold is in line with the company’s strategies, and it hopes blockchain can inject the much-needed boost for IBM as it had done in other companies, such as Unilever (LON:ULVR).
Global consumer brand Unilever collaborated with IBM to utilize blockchain in reducing ad fraud. Because blockchain acts as a third-party ledger, there is accountability and traceability in its system. Pinpointing areas of strengths and those that need improvements becomes easier. With blockchain, Unilever hopes to streamline the digital media buying process and lessen manipulation. Ad fraud costs the advertising industry some serious money as The World Federation of Advertisers predicts it could reach more than $50 billion in losses by 2025.
Alibaba (NYSE:BABA) is also banking on blockchain to improve its cross-border e-commerce. According to Coindesk, Alibaba and Cainiao signed a deal to improve export and import of goods with the use of blockchain to trace important information on products. The move is seen as a way of Alibaba to stop the spread of counterfeit products on its platform. Aside from advertising, e-commerce and cloud computing, blockchain can also be applied to other industries, and it has massive potential to change the way things are being done.
Investing in companies which adapts to blockchain is a good move at the moment. However, there is a link missing between companies, investors, and entrepreneurs. This link is now provided by Global Blockchain Technologies (OTC:BLKCF). Global Blockchain allows investors access to a mixture of assets in the blockchain space, strategically chosen to balance stability and growth. Any company can claim they are accepting Bitcoin, Ethereum or any form of cryptocurrency on their platform, but how do people know it is legit and legal when the industry remains unregulated?
The founders of Global Blockchain wants to ease these fears and worries. Members will be given access to information about the latest happenings around blockchain and cryptocurrency. They can also decide which companies to invest in. Global Blockchain serves as a vehicle for them and because bogus companies are filtered, fraud and other concerns on cryptocurrency investing is minimized or completely removed.
Investors and companies need not be as big as IBM or Alibaba in order to enter the highly technical cryptocurrency and blockchain industry. Companies like Global Blockchain makes it easier for anyone without sacrificing quality or information needed to survive the highly volatile market.