IBM shares plunge 25% after earnings miss, over $70B lost
IBM just had its worst day on the stock market, with shares dropping 25% and more than $70 billion in value wiped out.
The company missed its quarterly earnings targets, reporting $17.2 billion in revenue and $9.9 billion in gross profit, less than what analysts expected.
Arvind Krishna: delays, AI opportunity
Arvind Krishna, CEO, said the shortfall was mainly because clients are postponing big purchases, not because they've lost interest.
He's staying positive, though, noting that most of these deals should close by year-end and some have already started coming through this quarter.
On top of that, Krishna reassured investors that only a tiny slice (about 2%) of IBM's software could be replaced by AI right now, emphasizing that AI is more of a growth opportunity for IBM than a threat.