IBM Stock Faces Criticism as Employee Alleges Company is Dying

IBM's Deteriorating Position in Tech

An allegedly IBM Corporation (NYSE: IBM) employee went to Reddit on September 27 for a long rant against the company, stating, "Why are any of us still here? IBM is dying and we know it." According to the alleged employee, IBM monetizes confusion and warns of an imminent collapse as the company relies on legacy contracts.

Critical Insights from an Inside Perspective

ReindeerLess4421 argues that IBM's strategy is to sell complexity and then solutions for problems that were created by the company itself. The employee claims, "We sell tech to trap companies in it, then charge them forever to keep it working. The only reason companies are with IBM is because the cost of leaving is higher than the cost of staying." This perspective indicates a troubling appraisal of IBM's prospects.

Market Share and Cloud Challenges

• IBM Cloud holds a minuscule market share, as clients are reportedly trapped by outdated systems rather than choosing them for their merits.
• The employee criticizes IBM's acquisition strategy, citing the $34 billion acquisition of Red Hat as a failure to innovate internally.
• Concerns are raised about IBM's continued reliance on outdated System Z mainframes and charging hefty fees for maintenance.

The Future of IBM Stock

Although some analysts point to a healthy performance of IBM stock, closing at $220.84 per share, recent events force investors to reconsider the implications of the employee rant. As criticisms of IBM's dependency on legacy technology gain traction, the company's long-term market position remains uncertain.