{
  "type": "article",
  "title": "A Brutal Selloff Erased Nearly a Quarter of IBM's Value as Earnings Disappointed Wall Street",
  "summary": "IBM shares crashed by as much as 25% on Tuesday, the company's worst single-day fall in decades, after weaker-than-expected earnings. CEO Arvind Krishna admitted the company failed to move fast enough as customers shifted spending toward AI infrastructure.",
  "content": "Shares of the technology company IBM tumbled by as much as 25% on Tuesday, a punishing one-day slide that followed weaker-than-anticipated earnings released on Monday. The drop was the steepest the company has seen in decades, dragging the stock down toward roughly $210 after it had been trading around the $280 level.\n\nWhat the numbers showed\nThe preliminary second-quarter figures put revenue at $17.2 billion, below what the market had been counting on. IBM's own projection of $17.2 billion in quarterly sales fell short of the $17.85 billion analysts had penciled in. On the profit side, non-GAAP earnings are expected to come in at $2.93, against forecasts of $3.02. The miss triggered a wave of analyst downgrades and stoked worries about the company's strategy in AI infrastructure. Even so, IBM still carries an overall buy rating on Wall Street, though Tuesday's plunge is clearly a warning sign.\n\n \n\nThe CEO owns the stumble\n\"This quarter we faltered,\" Chief Executive Arvind Krishna wrote in a letter to investors, admitting the company \"did not adapt and move quickly enough\" as customers steered their technology budgets toward AI servers, storage and memory. Krishna said IBM had braced for some disruption from supply-chain constraints, but had badly underestimated just how sharply customers would redirect their spending.\n\nHe also pointed to the mainframe cycle. \"When we discussed our expectations with you in April, we noted that we would be wrapping up the launch of z17 in the second quarter,\" Krishna said. \"Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter.\"\n\nGuidance and the analyst view\nBeyond the earnings miss itself, IBM also handed investors softer-than-expected forecasts for the coming quarter and the rest of the fiscal year, which deepened the selloff. On the Street, the average price target still sits at $303.83, with the most bullish call at $375.00 and the most cautious at $191.00. That average implies a 39.37% jump from the current price, yet it is lower than where forecasts stood just a week ago. On Tuesday, HSBC slapped a sell rating on the stock while Morgan Stanley moved to hold. Both firms count five-star analysts among their ranks, so the earnings shortfall could hang over investors' thinking for the month ahead.\n\nWhat this means for you\n• For investors: Anyone holding IBM stock saw its value fall by up to 25% in a single day, as the price slid from around $280 to near $210.\n• For market watchers: With multiple downgrades and an average price target now lower than last week, the stock could stay volatile over the coming month.\n\nQuestions & Answers\n\n1. How much did IBM stock fall?\nIBM shares dropped by as much as 25% on Tuesday, the company's worst fall in decades.\n\n2. What caused the drop?\nMonday's quarterly results came in weaker than expected, with revenue of $17.2 billion falling short of forecasts.\n\n3. What did IBM's CEO say?\nArvind Krishna admitted the company faltered this quarter and did not adapt fast enough as customers shifted spending toward AI.\n\n4. What is IBM's average price target?\nThe average price target is $303.83, with a high of $375.00 and a low of $191.00.\n\n5. Which firms changed their ratings?\nOn Tuesday, HSBC assigned a sell rating and Morgan Stanley moved to hold.\n\n6. Is the stock still rated a buy?\nIBM still carries an overall buy rating on Wall Street, though Tuesday's plunge is a clear warning sign.",
  "url": "https://trendkia.com/en/market/kamajora-natijon-ki-mara-ibm-ke-sheyara-eka-hi-dina-men-25-taka-lurhake-7726",
  "category": "Market",
  "publishedAt": "2026-07-14",
  "tags": [
    "IBM stock",
    "IBM earnings",
    "Arvind Krishna",
    "Wall Street",
    "AI infrastructure",
    "stock market drop",
    "price target"
  ],
  "language": "en",
  "site": "TrendKia"
}