Jim Cramer defended IBM on Mad Money, calling it a hated stock that deserves better despite its tough performance. He noted that while the stock is down, it is doing better than people think, and he advised buying on dips, citing CEO Arvind Krishna's fantastic job. IBM's second-quarter revenue was $17.2 billion with non-GAAP EPS of $2.93, in line with expectations, as software revenue grew 5% to $7.8 billion, driven by Red Hat's 11% growth and double-digit data software expansion. However, infrastructure revenue fell 7% to $3.8 billion due to mainframe cyclicality, prompting management to lower full-year constant-currency revenue growth guidance to 4-5%. Institutional interest rose, with 74 hedge funds holding stakes in Q2, up from 59, and major funds like AQR, Marshall Wace, and Citadel increasing positions by 43%, 492%, and 107% respectively, while short interest stands at 2.62% of float.
International Business MachinesCramer defends IBM as undervalued, citing solid Q2 results and hedge fund buying, despite guidance cut.
