IBM Stock Drops 19%: Can Quantum Computing Turn Things Around?

TLDR

• IBM stock has dropped 19% since July 14 after weak Q2 earnings missed revenue estimates.
• Susquehanna analyst James Friedman raised his price target to $235 from $225 but kept a Neutral rating.
• IBM’s quantum division is gaining attention but currently generates very little revenue.
• A senior IBM executive sold $5.75 million worth of stock on August 26.
• The annual Quantum World Congress in September is seen as a key upcoming catalyst for the stock.

IBM stock opened at $235.78 on Monday, sitting near its 52-week low of $199.19 and well below its 52-week high of $332.46. The stock has fallen 19% since July 14, while the S&P 500 gained 2.1% over the same period.

International Business Machines Corporation, IBM

That slide started with a record single-day plunge when IBM pre-announced its Q2 earnings. The company reported $2.93 earnings per share, matching estimates, but revenue of $17.16 billion fell short of the $17.46 billion consensus. Revenue was up just 1.1% year over year.

One factor weighing on the business is customers shifting budgets toward AI hardware, pulling spending away from IBM’s traditional offerings.

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