Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks didn’t keep pace along the way.
IBM’s Difficult Decade
One of the biggest market laggards of the decade was tech giant IBM (NYSE: IBM).
IBM was one of the largest tech stocks in the market during the dot-com bubble in 2000. Unlike Microsoft, IBM has struggled mightily to transition from its legacy software and hardware businesses to a more cloud-centric and artificial intelligence-driven model.
IBM started the 2010s trading at around $130. The early years of the decade were good to IBM investors, and the stock rallied as high as $215.90 by early 2013. Unfortunately, the gains stopped there for IBM.
Shares traded back down to $116.90 in early 2016. Investors hoping the previous low from 2010 would hold were optimistic when the stock bounced as high as $182.79 in early 2017 before the rally stalled once again.
2020 And Beyond
IBM ultimately hit its 2010s low of $105.94 in late 2018 before bouncing back to $133 to close out the decade.
Despite the struggles, IBM investors did in fact turn a profit in the 2010s, and $100 worth of IBM stock in 2010 would be worth about $137 today, assuming reinvested dividends.
Looking ahead, analysts expect IBM will finally start to gain some ground in 2020. The average price target among the 18 analysts covering the stock is $148.50, suggesting 11.4% upside from current levels.