Jim Cramer Says IBM Is A Hated Stock That Deserves Better

On August 24, financial commentator Jim Cramer appeared on Mad Money and provided his thoughts on investing in International Business Machines Corporation (IBM). Cramer acknowledged that IBM's stock has been receiving negative attention, stating that it is "very tough" and that "people hate the stock even though I don't think they should."

He emphasized that he believes in IBM's potential, despite its recent performance. Cramer noted that the stock had experienced significant volatility, jumping 80 points in a week, and that he wanted the stock to have a chance to stabilize before considering a position. In the past, Cramer had been more supportive of IBM, advising investors to buy the stock due to its relatively low valuation and strong leadership under CEO Arvind Krishna.

He also highlighted IBM's software division as a growth engine, with revenue increasing by 5% year-over-year. Despite the software sector's resilience, IBM's infrastructure segment faced challenges, with revenues declining 7% due to reduced demand for mainframe systems. Overall, Cramer suggested that IBM may be undervalued and worth a closer look for investors willing to withstand the stock's recent market negativity.