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IBM Faces Historic Stock Plunge Amid Earnings Warning from CEO

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IBM is experiencing a significant decline in its stock value, with shares dropping 24% in premarket trading, potentially marking its worst day ever. The company's CEO, Arvind Krishna, attributed this downturn to unexpected changes in customer technology budgets and a surge in demand for microchips, which diverted funds away from IBM's new z17 mainframe computer. The earnings report, set for July 22, is expected to reveal only 1% growth in sales and a 2% drop in earnings per share, both below projections. This situation highlights the challenges IBM faces in adapting to rapid shifts in the tech landscape, particularly in the AI sector.

Key Details: • IBM shares fell 24% in premarket trading. • Earnings report scheduled for July 22. • Sales growth at only 1% and earnings per share down 2%.

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