Long-time US equity bellwether IBM is getting hit hard today after abandoning its earnings forecast for 2015
Long-time US equity bellwether IBM is getting hit hard today after abandoning its earnings forecast for 2015. The company is facing unprecedented change in the IT industry as companies move from owning hardware to fully utilizing cloud computing. IBM is down 7.5% as of this writing, which is unusual for the typically non-volatile stock. The move itself is also costing Warren Buffet about $1 billion as the company's largest shareholder. IBM will have to lower forecasts and cut jobs with software and hardware sales plunging. The company is also shedding its chip-making unit in an effort to reduce unprofitable business from its books. Globalfoundries will be taking over the chip division while receiving $1.5 billion from IBM to boot. Clearly not a good day for IBM investors. (VIEW LINK)
I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...
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