LIVE: IBM Shares Drop 8 Percent: The Rising Tide of Cloud Computing Puts a Hole in IBM’s Boat
You have to go back to early 2005 to find a quarter where IBM didn’t at least meet Wall Street’s expectations on reported profits. I see your 27-game winning streak Miami Heat, and raise you four. (IBM had met or exceeded profit report expectations of Wall Street for some 31 consecutive quarters). The stock market responded, hitting IBM with it’s largest single-day drop in eight years of 8 percent. If newly appointed Chief Executive Virginia “Ginni” Rometty wasn’t in the hot seat before, she sure is now. Here is what I speculate as a major contributing factor for the earnings miss: the rise of cloud computing.
On today’s Live NewsDesk Show with Kristin Feledy (see live stream below) we’ll be hearing from Wikibon Chief Analyst Dave Vellante. Is IBM down for the count? With IBM’s core business shifting, what is his prognosis for the future? How big of a factor is cloud computing?
Tune in every morning at 9:15 am EST for live broadcasts of the day’s top news in tech.
Image credit: Slashgear
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