IBM Faces Revenue Disappointment Despite Past Success

3 months ago

Lisa Martell

"I also want to go down to IBM because their shares apparently taken a hit, down more than 7%. Disappointing revenue. There were two key software categories, including their closely watched Red Hat unit. And if you're wondering what is that Red Hat? So that basically helps customers manage their data applications among different types of computing equipment. But the investors see those categories as critical to growth, and they didn't see the growth. So investors were not happy with that. And the stock, you know, it's been up 30% this year so. Part of it was due to that Red Hat, which was an acquisition they made, I don't know, ten years ago maybe."

The discussion around IBM points to investor disappointment with the company's revenue performance, particularly in its software segments like Red Hat, despite past successes and a 30% run in the stock this year.

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