Warren Buffett’s 18% holding IBM misses first quarter earnings amid rumors of restructuring and weak sales.
I didn’t hear this news on any of my news sources but this morning I realize from a technical analysis blog that IBM, a DOW component was down 10% for the week.
For a very well trending stock this has come as a surprise, which probably explains the fall.
This 10% drop is probably the biggest drop in 8 years. Quite particular we are starting to see much of this sudden shock a period of relatively low volatility.
A weak first quarter
The weak results are attributable to a weak software and server segment.
On top of that, the company said that they were hurt by belt tightening initiatives in China corporate sector and sales teams failing to close the deals by the end of the quarter.
- Diluted EPS
- Gaap: $2.7 (up 3%)
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