Changes in US stocks | Preliminary Q2 revenue fell short of expectations, IBM (IBM.US) plummeted by more than 25%, the biggest one-day decline since 1987

The Zhitong Finance App learned that on Tuesday, IBM (IBM.US) opened with a sharp drop of more than 25%, the biggest one-day decline since 1987, and is now reported at $215.95. According to the news, the preliminary quarterly sales results announced by IBM before the market fell short of Wall Street analysts' unanimous expectations. IBM said in a preliminary results statement that the company's second-quarter revenue is expected to be around US$17.2 billion, compared to the average Wall Street analysts' estimate compiled by the agency of about US$18 billion. According to the statement, sales of IBM's infrastructure business unit were particularly hard hit, and unexpectedly fell by about 7%. The company said it is still reviewing the accounts and the final results may be slightly different.

The company's CEO, Arvind Krishna, said that in order to cope with supply shortages across the industry, customers generally shift capital expenditure to AI servers, data center enterprise-grade NAND memory devices, and high-performance DRAM memory components, thereby weakening their spending and budget on the company's software products. “These environments require perfect execution by our team, and we made mistakes this quarter,” Krishna said. “Our adjustments and actions were not quick enough, and a number of large transactions were not completed in time as we expected, which contributed to most of this performance gap.”