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IBM shares skid more than 20% after company warns second-quarter earnings fell short of expectations

IBM shares plummeted over 20% after the company warned that second-quarter revenue and earnings fell short of expectations.

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14950Jul 14 14:29Jul 14 16:29 UTC

The brief

IBM has issued a warning that its preliminary second-quarter sales and earnings missed estimates. The company attributed the shortfall to customers pulling back on spending.

Coverage from Reuters and Bloomberg emphasizes that spending patterns are shifting toward AI. CNBC and Yahoo Finance report a significant stock crash, while Seeking Alpha notes that the warning triggered panic across software and consulting stocks.

Future developments center on the finalized second-quarter earnings reports and the ongoing shift in customer spending toward AI technologies.

Synthesized by Newsylist from the headlines below under a strict no-invention contract. ✓ fact-checked: all claims supported by sources Updated 4m ago.

Quick answers

How much did IBM's stock decline?

According to CNBC, shares skidded more than 20%.

Why did IBM miss its second-quarter expectations?

Bloomberg reports customers pulled back, while Reuters notes that spending is shifting to AI.

What other sectors were affected by this news?

Seeking Alpha reports that the warning caused panic in software and consulting stocks.

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