The market is flooded with names that claim to be AI companies. The word "AI-powered" is enough to get the attention of the Street, but some believe those days are going to be history soon as investors become jittery about massive CapEx and ROI-related fears.
To find out where retail investors are actually putting money for the long haul, we scoured Reddit threads and discussions on the r/stockstobuytoday community and picked two stocks retail investors on Reddit said they are buying for the next five years. These are International Business Machines Corporation (NYSE:IBM) and Alphabet Inc. (NASDAQ:GOOG). In this article, we will focus on IBM.
Retail investors on Reddit say they like IBM because they believe small quantum startups won't be able to raise enough development money or handle regulation, while IBM is already embedded in enterprise accounts with a strong reputation. They also like the stock's valuation and dividend.
Valuation
IBM has a forward non-GAAP P/E of 19.12, which is 15.72% below the sector median of 22.69 and 5.85% above IBM's own five-year average of 18.07. Forward GAAP P/E of 23.13 sits 21.10% under the sector and 17.03% below IBM's five-year average of 27.88. Forward EV/EBITDA of 13.85 is 5.46% under the sector median and 5.86% above IBM's own history.
#retail #enough #believe
To find out where retail investors are actually putting money for the long haul, we scoured Reddit threads and discussions on the r/stockstobuytoday community and picked two stocks retail investors on Reddit said they are buying for the next five years. These are International Business Machines Corporation (NYSE:IBM) and Alphabet Inc. (NASDAQ:GOOG). In this article, we will focus on IBM.
Retail investors on Reddit say they like IBM because they believe small quantum startups won't be able to raise enough development money or handle regulation, while IBM is already embedded in enterprise accounts with a strong reputation. They also like the stock's valuation and dividend.
Valuation
IBM has a forward non-GAAP P/E of 19.12, which is 15.72% below the sector median of 22.69 and 5.85% above IBM's own five-year average of 18.07. Forward GAAP P/E of 23.13 sits 21.10% under the sector and 17.03% below IBM's five-year average of 27.88. Forward EV/EBITDA of 13.85 is 5.46% under the sector median and 5.86% above IBM's own history.
#retail #enough #believe
15 days ago
