posted at 17:50
Author Name: Julie Bort
IBM Gives Up On Its 2015 Promise
On Monday, IBM CEO Ginni Rometty quietly but firmly stopped the madness that had been a noose around her neck since she took office. As part of IBM's disappointing quarterly earnings, she said the company is not going to hit $20 earnings per share in 2015, as IBM has been promising for years. IBM wasn't entering an era of coasting on past investments. As companies shift from buying everything to renting it, IBM's revenues are taking a beating. Plus, the biggest cloud providers aren't buying hardware, software, and services from companies like IBM. IBM even agreed to pay GlobalFoundaries $1.5 billion to take its money-losing microchip business off its hands. IBM tripled its debt to buy back billions of dollars of its own shares. A huge IBM selloff followed the news, and the shares dropped 7% in heavy volume.

Posts Archive