IBM reported fourth-quarter earnings that topped expectations on Tuesday, but shares fell more than 3 percent—the biggest drag on the Dow. What’s ahead for the firm? Peter Misek, global technology strategist at Canaccord Adams, shared his analysis.
“There were some expectations that they would boost the numbers even more,” Misek told CNBC.
“If you look at why the beat was so big, there were some tax helps in there that goosed the numbers a little bit. If you adjust that out, the beat wasn’t that strong.”
However, Misek told investors to buy technology stocks on the weakness.
“We also think there’s some big moves in the smartphone space,” he said.
Misek told investors that there could be a surprise in next week’s Apple event, other than the expected announcement of Apple’s tablet.
“We can have an iPhone 4.0 OS coming out and we’re on the cusp of an iPhone 4G, which won’t run on LTE (Long Term Evolution), but on CDMA (Code Division Multiple Access),” he said.
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Misek does not own shares of IBM. Cannaccord Adams has investment banking clients who own shares of IBM.