MarketPR
IBM (IBM) shares dropped 25% in a single session, the worst single-day performance on record for the company, after management issued a second-quarter earnings warning.
The CEO traced the shortfall to weakness in the software and infrastructure business, citing a client spending shift toward hardware purchases as the core reason.
The warning that reset the tape IBM issued the warning before the actual quarterly print arrived.
A pre-report warning signals management saw the quarter deteriorate enough to get ahead of the numbers rather than let investors absorb the miss cold on earnings day.
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