Is There Still Hope for IBM After This Sinkhole Day?
After IBM (NYSE:IBM) slipped 8 percent and closed at $19o on Friday — taking any hope for the Dow’s gain with it — investors were out looking for answers. IBM’s first earnings miss in eight years was no doubt alarming, but analysts are preaching patience with the tech giant, saying IBM’s pending layoffs and sales in the works could take the stock back over $200 and beyond.
Both Morgan Stanley analyst Katy Huberty and IBM CFO Mark Loughridge pointed to weakened yen and the early Easter in 2013 as contributing factors. Loughridge told the Wall Street Journal, “Our business in Japan is more heavily skewed to local services,” which forced the company to accept payments in weakened yen. He added, “It’s hard to imagine we weren’t affected by Easter.”