In an interview with Bloomberg, Stanley Druckenmiller says that IBM is One of the more high probability shorts I've seen in years. It's old technology that is going to be replaced by the cloud. If you go back to 2009, their sales are down since then even though they've made 47 acquisitions. All their business is moving to the cloud yet Amazon AWS is killing them. I think the truth-teller in companies is free cash flow and the free cash flow went from $16BN last year to $13BN this year. In regard to costs Druckenmiller goes on to say that pinching pennies in responding to the competitive threat is exactly what they shouldn't be doing, they should be investing and taking on the challenge of the Amazons of the world. It's worth watching the 15 minute interview if you have time: (VIEW LINK)