Jim Cramer advised investors to be careful if they are debating whether to buy shares of IBM after the company reported its third quarter earnings.
The stock is still down considerably compared to where it was just a few months ago. He said that he was optimistic but that the situation remained a trust but verify one.
IBM beat revenue and earnings estimates in the third quarter, and raised its revenue outlook. The company stated that revenue increased.
The strong U.S. dollar will hurt IBM's revenue, but the company still expects to have $10 billion in free cash flow.
While IBM still has plenty of room for improvement, this quarter was a big step forward for them, and it was a big win for the bulls.
The company spun off its managed infrastructure services business in November of 2021.
He said that IBM went through the Kyndryl spin-off to become a growth company again.
Jim Cramer has a guide to investing that you can download for free.
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