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IBM stock drop wipes out over $400 million in employees' 401(k)
IBM shares fell more than $73, or 25%, after the company warned second-quarter earnings would come in below expectations.
IBM’s stock plunge on Tuesday triggered large losses inside employees’ 401(k) plans, with MarketWatch reporting that IBM workers collectively lost more than $400 million due to the decline in the company’s shares.
According to MarketWatch, nearly 150,000 employees held 5.77 million shares of IBM stock in their retirement accounts, based on the company’s most recent filing.
The stock price fell more than $73, a drop of 25%, after IBM warned that second-quarter earnings would be below expectations, MarketWatch added.
MarketWatch also estimated the average impact at about $2,700 per participating worker in the plan.