View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Technology
  2. Hardware
July 19, 2017

IBM share price suffers after revenue falls for 21st consecutive quarter

IBM are finding it difficult to gain traction in the cutting edge tech spaces, despite major investment.

By Tom Ball

IBM posted a decline in revenue for a staggering 21st straight quarter, resulting in a 2.5 percent share price fall.

While the company missed its mark on revenue, it still managed to exceed expectations on earnings.

Analysts had foreseen this outcome for the company that has consistently missed the mark on revenue by four percent, with stocks subsequently falling 2.5 percent this time round. This slip in IBM stock left the share price down at $149.15 in after-market trading.

These results continue to reflect how IBM is wing clipped by its legacy business, while also proving the difficulty the company is facing in entering the competitive cloud space, and regaining relevance.

An outstanding fall of 5.1 percent was recorded in IBM’s technology services and cloud platforms business, dragging its value down to $8.41 billion. This business also constitutes IBM’s largest unit.

Content from our partners
Incumbent banks must transform at speed, or miss the benefits of open banking
Leverage cloud and expertise to optimise engagements from onboarding to conclusion
How enterprises can best prepare for finance digitalisation

IBM have also made major investments in current tech trends such as artificial intelligence in the form of Watson, but the results of this move have not matched the resources pumped into the project.

Another recent indicator of the poor performance and prospects of IBM is Warren Buffet’s move to sell off a third of its stake in the company, with Berkshire Hathaway being the largest IBM stakeholder.

READ MORE: IBM loses confidence of biggest investor as Warren Buffet sells stock

This instance is resounding proof of the dismal performance of Big Blue, with Berkshire Hathaway not only being the largest stakeholder, but also having remained loyal despite a long period of decline.

IBM faces pressure from the likes of Microsoft and AWS, companies holding the centre ground in the cloud arena. Cyber security is also an area eagerly pursued by the company that is densely populated with high profile, formidable competition.

Despite this lack of progress, IBM has recently signed a lucrative blockchain deal with a major European banking consortium. Members of this consortium include Deutsche Bank, HSBC, and Societe Generale.

Topics in this article: , , , , ,
Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU