Arvind Krishna's admission cuts IBM market value almost $70 billion
Business
IBM's market value dropped by almost $70 billion on Tuesday after CEO Arvind Krishna admitted the company was slow to notice how AI is changing what clients want.
Shares fell 25%, possibly marking IBM's biggest single-day loss ever. The news also hit other software giants like Microsoft and Salesforce.
IBM expects 1% revenue growth
Krishna explained that businesses are spending more on infrastructure, like servers and storage, because of supply chain issues, saying that the company was slow to recognize that clients are spending differently.
IBM expects just 1% revenue growth this quarter, its weakest in over a year.
Even with big investments in quantum computing and partnerships like OpenAI, analysts say these moves won't fix the immediate financial challenges.