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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.

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