tech
IBM stock heads for its worst day ever as shares plunge 25% on Q2 earnings warning
"This quarter we faltered," IBM CEO Arvind Krishna said in a letter to investors released Tuesday after worse than expected quarterly results.
TL;DR
- IBM's stock fell 25% to $215.34, its worst day ever, following a warning about preliminary second-quarter earnings.
- The company's software and infrastructure division underperformed due to the rollout of new z17 mainframes designed for AI workloads.
- Clients are cutting spending on IBM products and prioritizing 'servers, storage, and memory purchases' ahead of expected price increases.
- A global shortage of memory chips has increased hardware prices, influencing clients' purchasing decisions.
- Other software stocks like Salesforce and Microsoft also saw declines following IBM's warning.