"The company missed some opportunities. If they had acquired Salesforce (CRM) - Get Report years ago that might have been something they could do," Kisner said. He rated IBM "underperform" and placed a $125 price target on the stock, which is 18% lower than IBM's Tuesday closing price.
Investors including Berkshire Hathaway's (BRK.A) - Get Report (BRK.B) - Get Report Warren Buffett have praised IBM for its Watson supercomputer, but Kisner said Watson won't do much to "move the needle." Kisner said IBM is considered an "expensive solution" in the AI software market.
The company reported a year over year decline in revenue for the 21st-straight quarter late Tuesday.
IBM stock traded down almost 3% premarket Wednesday.
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