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IBM Stock Rises on Earnings Beat. CEO Says AI Is Helping. - Barron's

1. IBM's Q4 earnings exceeded expectations at $3.92 per share. 2. AI project demand fueled a nearly $2 billion increase in AI business. 3. Software segment grew 10.4% year-over-year; consulting and infrastructure declined. 4. Expected free cash flow for 2025 is approximately $13.5 billion. 5. Shares rose 8.7% in premarket trading following earnings announcement.

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FAQ

Why Bullish?

Strong earnings and AI growth indicate positive future performance. Past examples show similar reactions to earnings beats.

How important is it?

IBM's growth in AI and earnings suggests significant potential for stock appreciation.

Why Long Term?

IBM's strategy and strong cash flow suggest stable growth. Historical data shows sustained impacts from innovative projects.

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