IBM Is America's Worst Big Tech Company

IBM logo
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For decades, IBM was the premier tech company in the world. That was no longer the case a decade ago. A demonstration of its fall is a comparison of the market cap of America’s premier public tech corporations. IBM is far short of the leaders. (These 20 American companies have the worst reputations.)

IBM has a market cap of $125 billion. Meanwhile, Microsoft’s is $2.52 trillion. Alphabet, Amazon, and Nvidia are all over $1 trillion.

Its Prospects for a Rebound

IBM has tried to bill itself as a force in cloud computing. While it is in the business, its market share is small. If there is a hallmark of successful tech companies now, they either have a large footprint in cloud revenue or are part of the early leadership in artificial intelligence.

According to CRN, IBM’s global cloud market share is 3%, which has fallen recently. However, Google’s share is 11%, Microsoft’s is 21% and Amazon’s is 32%. CRN points out that “Amazon Web Services continues to be the dominant worldwide market share leader in cloud services, winning 32 percent share of the global market. AWS was a pioneer in cloud computing and has led the market for over a decade.”

In the most recent quarter, IBM’s revenue rose only 5% to $14.8 billion. Compare that to Microsoft’s revenue, which rose 13% in its most recent quarter to $56.5 billion. IBM’s net income was $1.7 billion, while Microsoft’s was $22.3 billion.

If IBM had been a small company two decades ago, its current situation might be called progress. In the year 2000, it ranked number six on the Fortune 500. Its revenue was much higher than it is today. On the most recent list, IBM ranked 65th. Microsoft ranked 13th.

Investors know that this company will never claim the spot it had at the turn of the century, and its market value is the primary evidence.

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