NEW YORK (TheStreet) -- International Business Machines Corporation (IBM) was falling 0.27% to $186.87 on Friday morning but could recover some of those losses thanks to the company's new investment plan.
IBM plans to invest more than $1 billion to create a new business unit for its Watson supercomputer, which it hopes will create $10 billion within the next 10 years. The investment plan includes $100 million for a venture capital fund that should stimulate the Watson Developers Cloud, which the company opened to external programmers in 2013. Furthermore, IBM plans to increase the number of workers at the Watson group to approximately 2,000, and many of those brought on board would be salespeople and consultants who would aid customers in using Watson.
This news comes on the heels of reports that Watson brought in less than $100 million from Watson as of Oct. 2013, as multiple projects either went wrong or proved to be more problematic than previously anticipated.
TheStreet Ratings team rates IBM as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL BUSINESS MACHINES CORP (IBM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: