IBM Revenue Concerns Amid AI Slowdown

3 days ago

Nathan Hager

"IBM shares feeling underwhelmed this morning, down 6.7% in pre-market trade. Disappointing revenue in a key software category. Now, this is tied uh to the AI trade. Their their unit called Red Hat, the hybrid unit. Uh Wall Street was very excited about it because it\"s mainly a cloud services division of IBM. There was a slowdown in sales and that has sparked concern among investors. Third quarter sales for this hybrid unit uh increased 14% which is a slowdown from the previous period and below the analyst average estimate around 16."

IBM is facing challenges with its revenue performance, particularly in its hybrid unit tied to AI, as a slowdown in sales has raised investor concerns.

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