Boston, MA 10\/18\/2013 (wallstreetpr) – International Business Machines Corp. (NYSE:IBM), <\/b>the Information Technology Services company dropped down so sharply, along with Goldman Sachs shares that, the Dow Jones Industrial average recorded a steep fall of 100 points.<\/p>\n
IBM has had tough third quarter, with challenges from both within and overseas. Typically, IBM results are indicators of the spending by companies across the world on technology. Over the past ten years, earnings in each quarter have grown steadily. This quarter was no disappointment in terms of expected profits, except for the fact that it just missed Wall Street determined revenue earnings by a few points.<\/p>\n
The per share earnings was attributed to $3.99, much higher than the forecast prices of $3.96.<\/p>\n
The Dragon\u2019s economics cripple IBMs results<\/b><\/p>\n
IBM was quick to show-case the shortfall in its overall revenue earnings, by breaking-down its earning\u2019s in China. Usually, IBM does not provide such a region-specific earning description but had to include it in its Q3 results as the Chinese government\u2019s economic plans have shot-down IBMs revenues.<\/p>\n
In just a matter of months, IBMs stock has moved from $210 in April to $173 this month.<\/p>\n
Another important fact that is at the root of IBMs performance is the move by most enterprises towards cloud computing. Most enterprises are currently in the transitional stage of experimenting with public clouds, thereby denting IBM core revenue earning openings in enterprises solutions development. It appears that Cloud platforms offered by providers such as Amazon has better takers, including CIAs contract. IBMs solutions were overlooked for Amazon\u2019s agile cloud computing solutions.<\/p>\n
While cloud computing solutions mature, with infrastructure based service providers like Amazon, IBM in the meanwhile remains focused on its core competences of providing the software tools that such cloud infrastructure will eventually require to enhance performance and services. By which time, it is expected that IBM solutions will already positioned to capture the market in this segment.<\/p>\n
IBM lack of revenue in this quarter is two-pronged: government shutdown and slow-down in Chinese contracts. As these two factors change, IBM is expected to regain the big technology \u2018influencing\u2019 stock tag soon!<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/18\/2013 (wallstreetpr) – International Business Machines Corp. (NYSE:IBM), the Information Technology Services company dropped down so sharply, along with Goldman Sachs shares that, […]<\/p>\n","protected":false},"author":15,"featured_media":10444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[1053,570,1797,3112],"stock_ticker":[],"class_list":["post-10443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-nyseibm","tag-ibm","tag-international-business-machines-corp-nyseibm","tag-international-business-machines-corp","entry"],"acf":[],"yoast_head":"\n