After the close, IBM (NYSE:IBM) reported another quarter with revenue declines. The market is particularly sensitive to this metric for a technology stock.
The stock has rallied strongly since the 2016 lows suggesting that revenue growth isn't an imperative for stock gains. Investors need to view the complete financial picture of IBM and not just the loss of legacy revenues.
The market is preoccupied with revenue growth despite annual revenue forecasts in excess of $76 billion. IBM made it clear a while back that the goal was to focus on profitable growth and not all out revenue growth.
