IBM loses quarter of its value as tech giant’s shares plunge and profits falter

IBM's shares dropped over 25% following a profit warning and preliminary second-quarter results that showed only a 1% revenue increase year-over-year, missing analyst expectations. The company attributed the underperformance to shifts in corporate spending towards datacentre infrastructure and cybersecurity, which impacted its higher-margin mainframe and software sales. This shift also affected the broader software sector, leading to declines in shares of other tech companies.