Diamonds and Dogs
Vertex Pharmaceuticals (VRTX) jumping 25% to new highs thanks to positive drug data for fighting cystic fibrosis. The safety and efficacy data are clear and compelling, indicating significant potential benefit for people with cystic fibrosis. The positive drug data will also make Vertex a possible acquisition target for larger companies. Plenty of upgrades this morning with price targets as high as $200.
Big Blue (IBM) is blue again. IBM is down 4% to a 52 week low on disappointing earnings. While IBM's cloud business is growing, it is not offsetting declines in its legacy business and is not matching the rapid expansion of its peers. IBM reported its 21st quarter of declining sales. Cloud revenues increased 17%, adjusted for currency, to $3.9 billion, but the cloud growth decelerated from a 35% year-over-year gain in the first quarter. Not good news for Big Blue.