IBM (NYSE: IBM), which has been poorly run for decades, is on the ropes.
The company has had plenty of practice managing decline
When it warned about its earnings a week ago, the stock dropped over 20%. It is down 30% for the year, while the S&P is up 9%. The picture is even bleaker from another vantage point: in early June, the stock changed hands at $329, but it trades at very slightly better than $200 now.
Yesterday, IBM reported the full extent of its failure with weak Q2 results. First, IBM announced it would cut guidance, although the revision was minor. The staggering news, however, was that revenue from IBM’s Z mainframe dropped 42%.