IBM shares have plummeted to a five-year low after the company released disappointing results yesterday.
The shares fell 5.35 per cent to $141.26 after markets reopened. IBM’s results showed that its up and coming cloud computing business was not yet making up the ground lost by its more traditional areas as it posted a 14th consecutive quarter of falling sales.
Revenue was down 14 per cent in the three months to September compared with the same period in 2014. Earnings per share was down nine per cent to $3.34.
Ginni Rometty, IBM chairman, president and chief executive officer said:
"We are continuing to make significant investments to build platforms around analytics, cloud, mobility and security that lay the foundation for a new era of cognitive business – where we see long-term value for our clients and shareholders."
IBM shares have now fallen around 13 per cent over the course of this year.