Why IBM Stock Is Sinking Today
International Business Machines (NYSE: IBM) stock is losing ground Thursday despite posting a better-than-expected first-quarter report yesterday. The company's share price had fallen 7.5% as of 12:15 p.m. ET amid the backdrop of a 1.2% gain for the S&P 500 (SNPINDEX: ^GSPC) and a 1.8% jump for the Nasdaq Composite (NASDAQINDEX: ^IXIC).IBM beat sales and earnings expectations and reiterated solid guidance for the year. But sales for the company's consulting segment came in lower than expected, and that's dampening some of the enthusiasm surrounding the stock as an artificial intelligence (AI) play.IBM posted non-GAAP (adjusted) earnings per share of $1.60 on sales of $14.54 billion in the first quarter. The performance came in significantly better than the average Wall Street analyst targets, which had called for per-share earnings of $1.43 on revenue of $14.39 billion.Continue reading
International Business Machines (NYSE: IBM) stock is losing ground Thursday despite posting a better-than-expected first-quarter report yesterday. The company's share price had fallen 7.5% as of 12:15 p.m. ET amid the backdrop of a 1.2% gain for the S&P 500 (SNPINDEX: ^GSPC) and a 1.8% jump for the Nasdaq Composite (NASDAQINDEX: ^IXIC).
IBM beat sales and earnings expectations and reiterated solid guidance for the year. But sales for the company's consulting segment came in lower than expected, and that's dampening some of the enthusiasm surrounding the stock as an artificial intelligence (AI) play.
IBM posted non-GAAP (adjusted) earnings per share of $1.60 on sales of $14.54 billion in the first quarter. The performance came in significantly better than the average Wall Street analyst targets, which had called for per-share earnings of $1.43 on revenue of $14.39 billion.