IBM and XLK Stock Analysis By Esha Karlekar
IBM and XLK Stock Analysis By Esha Karlekar, Ashrita Gollapalli, Rhea Kalluri, Shriya Srinivas
XLK -Sector for technology stocks -Includes Apple, Microsoft, Facebook, IBM, AT&T, Intel, and others Explanation of the Stock and Sector -Largest weight in the S&P 500 International Business Machines (IBM) -Technology giant, responsible for inventions like ATM, floppy disk drive, the hard disk drive, SQL programming language -Was worth around $150 -160 per stock, dropped considerably in the past year -One of the most influential corporations in pushing technology forward -Accounts for 2. 3% of holdings in XLK -5 th largest private employer in U. S. A.
Year-Long Analysis • - IBM stocks decreased overall in 2017 • - IBM reached peak in February/early March • - Increase in February/March probably has to do with the company making more advances in the cloud computing and artificial intelligence • - It spiked in mid to late October, but not to the same level as it was before • - IBM stock in August and September did poorly • - It reached its lowest price of $140. 00 in late August - -
Month-Long Analysis - The IBM stock decreased for almost half the month - The second half of the month the prices increased - The prices throughout the whole month were in the $150 -$140 range. - The IBM stock was at its lowest on Nov. 15, at $147. 10 - The highest was on Dec. 4 at $156. 46 -Linear: - Regression model shows overall slight increase during the month y = 0. 050123 x + 151. 042 of November r 2 = 0. 025731 r = 0. 160410 Linear: Regression model: Quadratic: y = 0. 050123 x + 151. 042 y = 0. 04457 x 2 – 1. 108698 x + 156. 2566957 r^2= 0. 025731 R 2 = 0. 868049 r = 0. 160410 Quadratic: y = 0. 04457 x 2 – 1. 108698 x + 156. 2566957 R^2 = 0. 868049
International Business Machines (IBM) -Not a good stock to invest in -Stock market is at all time high but IBM is going down -Competitors in XLK doing better -Month-long analysis is misleading -General direction of graph shows downwards trend Recommendations Technology Sector (XLK) -Good sector to invest in, prices are going up -Prices from start of 2017 could be 1. 5 times as much by end of 2018 -New government is helping with tax cuts -Doing well despite IBM, top few stocks are doing extremely well -General direction shows upwards trend
• • • Comparison of individual Stocks and Sector • • XLK Sector January 2017: 49. 53 December 2017: 66. 81 Will most likely increase by 2019 Holds the popular stocks of IBM, Apple, Intel and others Doing very well, going up at fast rate Apple Stock (another stock in sector) • January 2017: 137. 08 • December 2017: 175. 37 • Will most likely double by 2019 • Reached its peak at the beginning 2018 • Reflects what is going on in sector overall • • • IBM Stock January 2017: 163. 83 December 2017: 158. 49 Will most likely decrease by 2019 Reached the all-time low in August Going down despite sector going up
Chaparro, Frank. “UBS: Technologies like Blockchain Are IBM's 'Best Hope for Recovery'. ” Business Insider, 5 Sept. 2017, www. businessinsider. com/ubs-technologies-like-blockchainare-ibms-best-hope-for-recovery-2017 -9. �Lam, Bourree. “Trump's Promises to Corporate Leaders: Lower Taxes and Fewer Regulations. ” The Atlantic, Atlantic Media Company, 23 Jan. 2017, www. theatlantic. com/business/archive/2017/01/trump-corporatetax-cut/514148/. Sources �Research, Zacks Investment. “ 5 Overlooked Technology ETFs That Are Crushing XLK. ” Investor. Place, 18 Oct. 2017, investorplace. com/2017/10/5 -overlooked-technology-etf-crushingxlk-ggsyn/#. Wk 704 a 2 -Jp 9. Staff, Investopedia. “Standard & Poor's 500 Index - S&P 500. ” Investopedia, 15 Nov. 2017, www. investopedia. com/terms/s/sp 500. asp. team, The Weblogr. “Technology Index Fund Scholarly Search. ” Technology Index Fund | Scholarly Search, www. ksoa. net/pdf/technology-index-fund. html.
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