IBM Shares Plunge 25% After Q2 Miss; Cramer Says Stock Remains Not a Buy

IBM-25.23%
According to CNBC's Jim Cramer, IBM shares tumbled approximately 25% on Tuesday after the company preannounced disappointing second-quarter results. Revenue, earnings, and software revenue growth all fell short of Wall Street expectations. CEO Arvind Krishna acknowledged the company "faltered" as several large customer deals failed to close. Cramer said IBM is disadvantaged as corporate IT budgets shift toward cybersecurity, hardware, and artificial intelligence spending, with other technology projects being deprioritized. "I have no idea when it will change, which is why I can't recommend IBM," Cramer said.
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