On Thursday, IBM stock surged.
The boost to the stock came after it announced plans to spin off its legacy managed infrastructure business.
IBM plans to solely focus on building up its cloud division.
The spinoff is expected to be tax-free for IBM shareholders and will be completed by the end of 2021, the company said.
"IBM is laser-focused on the $1 trillion hybrid cloud opportunity," IBM CEO Arvind Krishna said.
Business Insider reports that IBM also released preliminary third quarter earnings results.
