Diamonds and Dogs

1/30/25

IBM (IBM) jumps 12% to a new high on strong earnings thanks to AI business. IBM easily beat by 14 cents with their AI business now standing at $5 billion, up $2 billion quarter over quarter. IBM also forecasts a strong 2025 and beyond and expect revenue growth of at least five percent and free cash flow of around $13.5 billion this year.

UPS (UPS) is down 15% to a new multi year lower week low following earnings. The earnings were actually much better than expected as revenue rose, however guidance for 2025 will be well below consensus as UPS has reached an agreement in principle with its largest customer. Amazon to lower its volume by more than 50% by the second half of 2026. Amazon accounted for 11% of their sales. UPS  is planning capital expenditures of about $3.5 billion, dividend payments of around $5.5 billion, subject to board approval, and share repurchases of around $1.0 billion for this year.