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

IBM issued profit warning after weak second quarter, triggering selloff in software sector including Microsoft

Shares in IBM plunged more than 25% on Tuesday after the US tech giant released disappointing preliminary second-quarter results. IBM’s stock was on track for an even steeper single-day decline than it suffered during ⁠the 1987 “Black Monday” crash.

IBM had issued a profit warning and blamed shifts in corporate customers’ spending. The company said revenue for the three months ending in June came in at $17.2bn, up just 1% year-over-year.