IBM stock sees worst in 39 years, CEO admits company 'failed' to close large deals
IBM shares dropped 23% after the company missed revenue expectations, marking its worst performance in nearly four decades. CEO Arvind Krishna attributed the failure to a shift in client spending toward AI-related hardware rather than software services.
Why it matters
It illustrates the massive market disruption caused by the rapid corporate pivot toward AI infrastructure and the resulting volatility for legacy tech firms.
IBM suffered a historic collapse on Wall Street on Tuesday (July 14) as its stock plunged 23% – marking the company’s worst single-day performance in 39 years, CNBC reported. IBM shares dropped 23.7% on October 19, 1987. The panic was triggered after the computing, software and consulting provider released preliminary second-quarter financial results that missed Wall Street's expectations across the board.IBM said in a statement that preliminary second-quarter revenue totaled $17.2 billion, which is below analysts’ estimates of $17.9 billion. Sales from IBM’s infrastructure division were especially hard hit, dropping 7%. The company said it is reviewing its books and final results may be slightly different.
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