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IBM stock drops after preliminary results miss estimates
IBM reported preliminary second-quarter revenue of $17.2 billion, below the $17.85 billion analysts expected, and shares fell 25% on Tuesday.
Yahoo Finance highlighted that IBM announced preliminary second-quarter results with revenue of $17.2 billion, missing analyst estimates of $17.85 billion.
The outlet also noted IBM’s non-GAAP earnings outlook, with expected earnings of $2.93 versus estimates of $3.02, as the company’s stock plunged 25% on Tuesday, marking its worst day since 1961.
Yahoo Finance quoted Globalt Investments senior portfolio manager Thomas Martin saying IBM may need time in a penalty box while the company adjusts its business, and said investors would likely require several strong quarters to rebuild trust.
By contrast, Yahoo Finance said the market reaction for memory chip names like Micron and Sandisk appears tied more to rate hike worries than to longer-term AI concerns.