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IBM Shares Tumble on Concerns Over Software Deal Timing
22 Oct
Summary
- IBM's stock dropped significantly in premarket trading.
- Analysts question the sustainability of recent software gains.
- Some software growth reportedly stemmed from prior-quarter delays.
IBM's share price saw a substantial decrease of 6.5% in premarket trading on Thursday. This downturn followed an analysis by industry experts who pointed to a crucial factor behind the company's third-quarter software rebound.
According to these analysts, a part of the reported software growth was not indicative of new momentum but rather a result of business deals that were originally scheduled for the prior quarter. This revelation has cast doubt on how sustainable IBM's recent software performance improvements truly are, prompting investor caution.