US software stocks plunge; IBM’s earnings fall short of expectations, sparking investor concerns

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Mars Finance reported that on July 14, according to BIT (bit.com) market data, the shares of U.S. software and IT services companies dropped sharply. The renewed market concern about the industry outlook was again triggered after International Business Machines (IBM) posted results that fell short of analysts’ expectations.

In the early trading session of U.S. stocks on Tuesday, IBM’s share price plunged by as much as 26%; if the decline held through the close, it would mark the worst single-day performance since at least 1968. IBM said that its results missed expectations because customers shifted capital expenditures from IBM products to chips and servers.

The software sector was under broad pressure. Microsoft fell 2%, Workday Inc. fell 6.3%, Salesforce Inc. fell 3.2%, Autodesk fell 2.4%, and SAP SE fell 3.4%. The iShares Expanded Tech-Software Sector ETF, which tracks the software sector, fell as much as 2.7% before its decline later narrowed.

IBM-25.23%
MSFT-1.55%
WDAY-3.49%
CRM-2.10%
ADSK-2.99%
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