UBS: Technologies like blockchain are IBM’s ‘best hope for recovery’ (IBM)

business news

Blockchain may be IBM’s saving grace.

That’s the thesis of a research note by a trio of analysts at UBS, the Switzerland-based bank, out Tuesday morning. 

IBM, the New York-based technology company, has witnessed its stock tank more than 14% year-to-date, despite its inroads into blockchain technology this year. 

Blockchain, the technology powering cryptocurrencies such as bitcoin and ethereum, has become a popular buzzword on Wall Street as the price of digital coins and tokens continue to climb. But blockchain’s potential extends well beyond the cryptocurrency space.

Blockchain’s use as a distributed ledger and as an enabler of smart contracts could transform businesses across Wall Street, including the $2 trillion payments industry, according to UBS. The bank sees these use-cases — outside of digital coins — as key to IBM’s growth moving forward. 

“Both IBM and Microsoft are looking to monetize blockchain, but we think IBM is ahead and that blockchain is more important for IBM,” the bank said. “IBM’s legacy businesses are in decline; we think technologies such as blockchain and cognitive computing are its best hope for recovery.”

Already, IBM has partnered with a slew of businesses, including Walmart and Maersk, to help track everything from food safety to mango shipments using distributed ledger technology. 

Instead of every single party — manufacturer, shipper, buyer, and any other intermediary — all relying on their individual paperwork to track a shipment from beginning to end, the blockchain would allow all stakeholders to see every step in an open, secure ledger.

IBM has also used blockchain in its 125,000-client global financing unit, according to UBS.

“The effort has reduced dispute resolution time from over 50 to fewer than 10 days and reduced administrative costs,” the bank said. 

UBS thinks IBM’s history as a leading provider of technology to financial services firms and its “finance-savvy sales team” will position the company to be a leader in exploiting blockchain.

The bank has a price target of $152 for the company, above its current market price of $143 per share. 

SEE ALSO: Here are 8 of the most bizarre cryptocurrencies on the market

Join the conversation about this story »

NOW WATCH: THE BOTTOM LINE: A lot of talk of a bitcoin bubble and a few good reasons to believe tech isn’t one

Комментариев нет

Добавить комментарий

Этот сайт использует Akismet для борьбы со спамом. Узнайте как обрабатываются ваши данные комментариев.

business news
Trump’s trade fight and the unwinding of a $3 billion bet are clobbering copper

Copper prices on the London Metal Exchange slipped below $6,000 for the first time in a year Thursday. Analysts say trade escalations are weighing on a market already under pressure. An unwinding of a $3 billion long position put pressure on prices earlier this month.  Follow copper in real time …

business news
Trump threatens to slam a massive tariff on European cars, which could cause economic chaos

President Donald Trump on Friday threatened to impose a 20% tariff on imports of cars from the European Union. The move would be a huge escalation of Trump’s ongoing trade conflict with the EU. Trump already hit Europe with steel and aluminum tariffs, angering EU leaders and triggering retaliation. President …

business news
Bitcoin’s rough patch looks like the Nasdaq during the tech bubble — except it’s moving 15 times faster

Bitcoin fell as much as 70% from its mid-December high through its recent early-February low. The cryptocurrency’s price chart mirrors that of the Nasdaq Composite Index during the dotcom bubble era, but there’s a catch. Historical fluctuations in the Nasdaq should provide a template for how bitcoin will trade going …