IBM’s stock buried in the penalty box after 25% drop
IBM shares plunged about 25% after warning Q2 sales of $17.2 billion and non-GAAP EPS of $2.93 vs estimates, citing a weaker mainframe performance and a software stack shortfall tied to the z17 launch. Analysts say the stock will likely stay in the 'penalty box' for quarters as client capex shifts toward servers and memory amid cybersecurity concerns; a multi-quarter comeback is needed, though there was a slight premarket uptick.
