IBM stock plunged nearly 20% after disappointing earnings revealed weakness in its software and infrastructure businesses. Investors are now questioning the future of IBM’s growth strategy and its position in the competitive AI and technology market.

“$72B Gone in 48 Hours” - IBM Just Got WRECKED After Earnings Disaster

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IBM. We've heard about IBM for how many decades? Many, many years. Back in the days, IBM was Facebook. Back in the days, IBM was Google. IBM was Microsoft. IBM was what all these companies we talk about today. The first guy was IBM, right? Yesterday, IBM's numbers. You ready? Drops 25% in a single day. Okay? 25% in a single day. Let me read these numbers to you and then Tom, I'm going to come to you and...

Vinny, please get your reports ready. I'm so ready. You have no idea. Okay. So IBM ended trading Tuesday down more than 25%. It's worst single day drop since, you ready? 1968. Me and Vinny weren't even born yet. Okay?

After the company preannounced earnings that fell below Wall Street expectations, Big Blue attributed the results to customers shifting spending away from software and mainframe product and toward AI servers, memory. In the industry, analysts had expected IBM to report adjusted earnings per share EPS of $3.02 on revenue of $17.86 billion.

But the company came up short posting adjusted EPS of $2.93 on revenue of $17.2 billion. And a statement IBM CEO, Arvind Krishna, said the company was prepared for a low single-digit decline in its Z17 mainframe business for the quarter.

“$72B Gone in 48 Hours” - IBM Just Got WRECKED After Earnings Disaster

Read the full transcript

The candid version is on a podcast,
not the earnings call.

“$72B Gone in 48 Hours” - IBM Just Got WRECKED After Earnings Disaster

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.