Question 1

Why did IBM stock crash 25%?

Accepted Answer

IBM issued a pre-earnings warning that customers were diverting spending toward AI infrastructure and cybersecurity, hurting mainframe and software sales, and CEO Arvind Krishna admitted several large deals failed to close on schedule. The drop wiped out around $70 billion in market value, its worst single day in nearly 60 years.

Question 2

What did IBM say about AI spending?

Accepted Answer

Krishna said clients spent the final weeks of June buying servers, storage, and memory to lock in supply-constrained infrastructure before expected price increases, a bigger shift than IBM anticipated. He also said cybersecurity concerns, linked by Barclays analysts to Anthropic's Mythos AI model, led companies to delay software purchases.

Question 3

When does IBM report full second-quarter earnings?

Accepted Answer

IBM is scheduled to report its full second-quarter results on July 22, and it currently expects revenue of about $17.2 billion and adjusted earnings per share of $2.93, both below Wall Street estimates.

INTU

IBM stock crashes 25%, its worst day since 1987, on AI spending shift

One sharp brief.
Every day.

INTU

IBM stock crashes 25%, its worst day since 1987, on AI spending shift

One sharp brief.Every day.

One sharp brief.
Every day.