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IBM shares surge 10% on earnings beat

1. IBM's Q4 earnings surpassed expectations, with EPS at $3.92 compared to $3.75 expected. 2. Stock rose 10% post-earnings, largest jump since March 2020. 3. Revenue for Q4 was $17.55 billion, beating the $17.45 billion estimate. 4. IBM generated $5 billion in bookings for its generative AI business. 5. Software revenues grew by 10% year-over-year, indicating strong AI demand.

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FAQ

Why Bullish?

Strong earnings and revenue growth typically lead to positive market sentiment. For instance, IBM's stock rose significantly after past earnings beats.

How important is it?

Q4 earnings report directly impacts investor confidence and IBM's stock value. Consistent performance in the AI sector is crucial for future growth.

Why Short Term?

Immediate reaction from earnings is expected, but sustained growth is needed. The stock price may stabilize after the initial surge.

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