IBM Stock Plunges 25% After CEO Admits AI Spending Miscalculation

IBM's stock experienced its worst single-day decline since 1987, plummeting 25% and wiping out $69 billion in market value. CEO Arvind Krishna attributed the crash to a misjudgment in client spending on AI products, acknowledging the company 'faltered' in anticipating the shift.

14 Jul, 12:09 — 15 Jul, 11:53

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Why this matters

IBM is a legacy technology giant, and its significant stock plunge signals a potential shift in the broader tech market, particularly concerning AI spending. This event highlights challenges even established companies face in adapting to rapidly evolving technological landscapes and investor expectations.

Key entitiesIBM Arvind Krishna

The Story

What 10 sources agree on, dispute, and miss

What sources agree on

IBM's stock plunged approximately 25%
The stock decline was triggered by disappointing Q2 financial results
IBM lost around $69-70 billion in market valuation in one day
The decline is one of the worst in IBM's history, comparable to or worse than the 1987 'Black Monday' crash

Key claims3 agreed · 2 unverified

✓

IBM's stock plunged 25% on Tuesday.

agreed·Yahoocapital-bgdie-presseseeking-alphanaftemporiki+3

✓

IBM lost approximately $69-70 billion in market value.

agreed·capital-bgnaftemporikiTimes of India

✓

The stock fall is IBM's worst one-day decline since 1987.

agreed·indian-expressTimes of Indianaftemporikindtv

IBM's revenue for Q2 rose just one percent to $17.2 billion.

unverified·ndtv

Clients are currently preferring to buy memory chips over IBM products.

unverified·die-presse

Where they diverge

Specific reason for disappointing Q2 results

Business Insiderdie-presse

Clients are spending less on IBM's AI products and preferring memory chips

ndtv

CEO Arvind Krishna's remark 'We Faltered On AI' is the key reason

Coverage gaps

The specific revenue figure for Q2 ($17.2 billion, up 1%)

Reportedndtv

MissingYahoocapital-bgdie-presse+5

The spread of weakness to other software stocks

ReportedTimes of India

MissingYahoocapital-bgdie-presse+5

Mention of IBM CEO Arvind Krishna's internal letter preceding the stock fall

Reportedindian-express

MissingYahoo

The Story

Analyzing sources…

Source Diversity

High (67/100)

10 sources33/33

Spectrum spread— 2/5 buckets covered8/33

Far L

Left4

Left (4)

Yahooindian-expressndtvBusiness Insider

Center

Right6

Right (6)

capital-bgdie-presserzeczpospolitaseeking-alphanaftemporikiTimes of India

Far R

Geographic diversity— 6 regions26/34

US3India3Bulgaria1Austria1Poland1Greece1

Sources

Showing 6 of 10 sources

Business InsiderMostly Factual31d ago

IBM stock plunges 23% as it says clients are spending less on its AI products

Inside an IBM data center. Connie Zhou for IBM IBM stock tanked in premarket trading on Tuesday after worse-than-expected Q2 results. The company's stock was set to open down almost 23%. "This quarter we faltered," IBM CEO Arvind Krishna said in a letter to investors. IBM shares tanked in premarket trading on Tuesday after the tech giant reported worse-than-expected results and said customers were cutting back spending on its AI infrastructure and software products. The company's stock was ...

Read full article →

YahooMostly Factual30d ago

IBM stock price still in the 'penalty box' after epic 25% crash

Read full article →

Times of IndiaMostly Factual30d ago

IBM's 'ugly moment': Worst fall since 1987, $69 bn wiped out — Why did stock crash 25%?

Shares of IBM plunged 25% on Tuesday, with the company seeing a steeper one-day decline than it experienced during the 1987 "Black Monday" market crash. The weakness also spread to other software stocks.

By TOI BUSINESS DESK

Read full article →

indian-expressMostly Factual30d ago

Inside CEO Arvind Krishna’s letter that preceded IBM’s worst one-day stock fall since 1987

Read full article →

ndtvMostly Factual30d ago

IBM Stocks Slide Most In 58 Years Over CEO Arvind Krishna's "We Faltered On AI" Remark

IBM Stock Crash: IBM said its revenue for the three months ending in June rose just one per cent to $17.2 billion.

Read full article →

seeking-alphaMixed30d ago

Quant snapshot of IBM peers after disappointing Q2 numbers cause 25% plunge

Read full article →

Coverage Timeline

First report: Business Insider · 14 Jul, 12:09|Full coverage: 10 · 24h|Window: 24h

Left-leaningCenterRight-leaning

Business Insider14 Jul, 12:09First to report

IBM stock plunges 23% as it says clients are spending less on its AI products

15h later

Times of India15 Jul, 02:48

IBM's 'ugly moment': Worst fall since 1987, $69 bn wiped out — Why did stock crash 25%?

ndtv15 Jul, 03:04

IBM Stocks Slide Most In 58 Years Over CEO Arvind Krishna's "We Faltered On AI" Remark

naftemporiki15 Jul, 03:43

Σοκ για την IBM: Έχασε 69 δισ. δολάρια σε μία ημέρα – Tι έφερε τη βουτιά 25%

4h later

seeking-alpha15 Jul, 07:24

Quant snapshot of IBM peers after disappointing Q2 numbers cause 25% plunge

indian-express15 Jul, 07:32

Inside CEO Arvind Krishna’s letter that preceded IBM’s worst one-day stock fall since 1987

rzeczpospolita15 Jul, 08:24

Historyczne tąpnięcie IBM. Akcje giganta runęły o 25 proc.

die-presse15 Jul, 09:11

„Haben versagt“: IBM-Aktie erlebt tiefsten Absturz ihrer Geschichte, Chef räumt Fehler ein [premium]

1h later

capital-bg15 Jul, 10:27

Бизнес глобус: Акциите на IBM се сринаха с 25%; CXMT планира най-голямото IPO в Китай от 2010 г.; JPMorgan с най-голямата тримесечна печалба

1h later

Yahoo15 Jul, 11:53Latest update

IBM stock price still in the 'penalty box' after epic 25% crash

Story evolution

The initial reports focused on the sheer scale of the stock plunge, with later coverage shifting to the underlying causes, particularly the CEO's acknowledgment of issues with AI strategy and client spending habits.

Pre-market plungeJuly 14 morning

IBM's stock tanked in pre-market trading following worse-than-expected Q2 results.

Official market open and historical declineJuly 14 afternoon

The stock officially opened down, experiencing a 25% drop, marking one of its worst historical declines.

Post-market analysis and CEO remarksJuly 15 morning

Outlets began analyzing the reasons for the crash, focusing on CEO Arvind Krishna's comments about faltering on AI and client spending shifts.

IBM Stock Plunges 25% After CEO Admits AI Spending Miscalculation

Why this matters

The Story

What sources agree on

Key claims3 agreed · 2 unverified

Where they diverge

Coverage gaps

The Story

Source Diversity

Source Diversity

Sources

IBM stock plunges 23% as it says clients are spending less on its AI products

IBM stock price still in the 'penalty box' after epic 25% crash

IBM's 'ugly moment': Worst fall since 1987, $69 bn wiped out — Why did stock crash 25%?

Inside CEO Arvind Krishna’s letter that preceded IBM’s worst one-day stock fall since 1987

IBM Stocks Slide Most In 58 Years Over CEO Arvind Krishna's "We Faltered On AI" Remark

Quant snapshot of IBM peers after disappointing Q2 numbers cause 25% plunge

Coverage Timeline

IBM stock plunges 23% as it says clients are spending less on its AI products

IBM's 'ugly moment': Worst fall since 1987, $69 bn wiped out — Why did stock crash 25%?

IBM Stocks Slide Most In 58 Years Over CEO Arvind Krishna's "We Faltered On AI" Remark

Σοκ για την IBM: Έχασε 69 δισ. δολάρια σε μία ημέρα – Tι έφερε τη βουτιά 25%

Quant snapshot of IBM peers after disappointing Q2 numbers cause 25% plunge

Inside CEO Arvind Krishna’s letter that preceded IBM’s worst one-day stock fall since 1987

Historyczne tąpnięcie IBM. Akcje giganta runęły o 25 proc.

„Haben versagt“: IBM-Aktie erlebt tiefsten Absturz ihrer Geschichte, Chef räumt Fehler ein [premium]

Бизнес глобус: Акциите на IBM се сринаха с 25%; CXMT планира най-голямото IPO в Китай от 2010 г.; JPMorgan с най-голямата тримесечна печалба

IBM stock price still in the 'penalty box' after epic 25% crash

Story evolution

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Why this matters

Story evolution

The Story

What sources agree on

Key claims3 agreed · 2 unverified

Where they diverge

Coverage gaps

Coverage matrix