Cramer Says IBM Is on Wrong Side of Corporate Tech Spending Shift After 25% Stock Drop
2026-07-14 22:52:06
According to CNBC, Jim Cramer said IBM has ended up on the wrong side of a shift in corporate technology budgets and said he cannot recommend the stock after its sharp decline. IBM shares fell about 25% after the company preannounced disappointing second-quarter results ahead of next week’s scheduled earnings release, with revenue, earnings and software revenue growth missing Wall Street expectations; CEO Arvind Krishna said the company “faltered” as several large customer deals did not close. Cramer said the miss is a clear sign companies are reallocating IT spending toward cybersecurity, hardware and AI “tokens,” while other projects are being deprioritized, and he said IBM has too much exposure to those lower-priority categories despite what he described as a decent AI narrative. He said IBM has attractive long-term businesses and now yields more than 3%, but added he remains concerned the company will keep getting pressured by shifting tech budgets.
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