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Why IBM Stock Crashed Today
The Motley Fool·
IBM stock plunged 25.37% after the company warned of a significant profit shortfall. The tech giant expects Q2 revenue growth of just 1% to $17.2 billion and EPS down 2% to $2.27, both below Wall Street estimates. CEO Arvind Krishna attributed the miss to customers prioritizing cybersecurity investments to counter AI-powered threats and spending on servers/storage to lock in supply before price increases, which reduced spending on IBM's software and infrastructure offerings.
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