Shares were pressuring the price-weighted Dow average.
Sares of IBM dropped nearly 4% Wednesday after the multinational technology company announced yet another revenue decline.
IBM reported second-quarter revenue of $19.29 billion on Tuesday, marking the 21st straight quarter of declining revenues. Sales for the company also missed a Reuters estimate of $19.46 billion.
“As expected, we had a larger currency headwind to revenue growth with about twice the impact of the first quarter, ” IBM CFO Martin Schroeter said in a statement Tuesday. “Excluding the acquisitive content, our year-to-year revenue performance was a modest improvement over last quarter’s rate.”
The stock’s fall was set to pressure the price-weighted Dow Jones industrial average. IBM is the fifth-largest Dow component by share price.
“If you’re looking at IBM, you have to take a longer-term view and you have to be expecting a single with a nice dividend yield rather than a homerun, ” said David Katz, chief investment officer at Matrix Asset Advisors, on CNBC’s ” Closing Bell ” Tuesday. “We think a year from now the stock could be about 15% higher.”
IBM stock has fallen more than 7% to date.