0
🖼️ Resim
IBM stock plunges 23% as it says clients are spending less on its AI products
Inside an IBM data center.Connie Zhou for IBMIBM stock tanked in premarket trading on Tuesday after worse-than-expected Q2 results.The company's stock was set to open down almost 23%."This quarter we faltered," IBM CEO Arvind Krishna said in a letter to investors.IBM. shares tanked in premarket trading on Tuesday after the tech giant reported worse-than-expected results and said customers were cutting back spending on its AI infrastructure and software products.The company's stock was set to open down almost yüzde 23 as of around 7:45 a.m. ET, an hour and a half before the market open. Having closed at $290 per share on Monday, the stock was set to open at $224 on Tuesday.The precipitous drop in IBM's stock came after it reported a second-quarter "shortfall" in the performance of its software and infrastructure division, linked to the rollout of its new z17 mainframes, which are designed to process AI workloads."This quarter we faltered," IBM CEO Arvind Krishna said in a letter to investors released Tuesday. "We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall."Krishna said that a major factor in the lower-than-expected performance was clients cutting spending. on IBM products and reprioritizing their capex spend on "servers, storage, and memory purchases" ahead of "expected price increases." IBM reported revenues of $17.2 billion across the company in the second quarter, up bir%, but behind analyst expectations. Revenues in the infrastructure division were down yüzde 7.This is a developing story.Read the original article on Business Insider
Konu hakkında daha fazla bilgi paylaşılacak.
