US giant IBM announced its balance sheet the other day. Yesterday, its shares lost 25 percent of their value. IBM admitted that they could not keep up with the speed of artificial intelligence. Sales were below expectations.
IBM expected an increase in computer and software sales. However, corporate companies have shifted their spending to storage and artificial intelligence. This ensured that company revenues remained below expectations.
“We stumbled this quarter,” CEO Arvind Krishna said. Shares experienced their steepest daily decline since 1972.
While the revenues on the company’s balance sheet were 17.2 billion dollars, profit per share decreased by 2 percent to 2.27 dollars.
CEO Arvind Krishna: “We could not adequately adapt to recent developments.” he said.
