Jim Cramer told "Mad Money" Research Director Nicole Urken that it's time to start questioning the company's operations, since it has so many different business segments that are underperforming.
Famed investor Warren Buffett has been a big backer of the company, something that has likely prevented the stock from trading down to $150, Cramer added.
He went on to say that while IBM's buyback is nice, it's not aggressive enough at the moment.
Also, buybacks are nice for companies with slight growth, not ones that have negative growth. In that instance, many investors shouldn't care about the buyback.
Cramer suggested that the company has still not figured out how to adapt to the quickly changing competitive landscape, indicative of the ongoing earnings misses.
After searching for reasons to own the stock, Cramer concluded there was only one positive thing at the moment: The share buyback.
He added that without Buffett as a big shareholder, the stock would be in a lot more trouble. "This company is structurally challenged," he said.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.