IBM – IBM shares fall deepest in 10 months – . – Latest News, Breaking News, Top News Headlines
January 22, 2021 | 3:56 pm
Editor’s Note: This text was originally published at 1:07 pm (CDMX time) and is updated with the closing price of IBM shares
Shares of International Business Machines (IBM) registered their deepest decline since March 12 of last year after reporting lower sales during the fourth quarter of 2020.
At the close of Wall Street, IBM shares fell 9.91% to a price of $ 118.61, the lowest since November, according to data from Fintech Zoom.
In the October-December period, IBM’s sales fell 6.5% to $ 20.4 billion, below analysts’ expectations, and marking the 10th quarter with no annual revenue growth.
IBM attributes the disappointing results to the uncertainty facing companies, with a significant decline in demand for its services from banks, airlines and retailers.
Our performance reflects the fact that our clients continue to grapple with the effects of the pandemic and the uncertainty of the macro environment.
said IBM CEO Arvind Krishna, who took over in April last year
“This puts additional pressure on larger software transactions this quarter and project delays on some service commitments.”
Your business sales of Cloud & Cognitive, which integrates IBM’s software offerings and represents its largest unit, fell 4.5% to 6.8 billion after two years of growth.
Still, CFO James Kavanaugh said an accelerated move to cloud by businesses, a rebound in sales at the global business services unit, and a weaker dollar have the company confident of returning to growth from revenue this year.
Revenue from its cloud business increased 10%, to a record $ 10 billion.
The 109-year-old firm is preparing to split into two public companies to focus on the cloud computing industry, in which companies use a combination of their own data centers and leased resources to manage and process data.
We have announced 4Q 2020 earnings. Details are available here: https://t.co/DXgPuX2LKW pic.twitter.com/0HipDprDSc
With information from .
