See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/21/2026 | 532.81 |
| Change that session | +0.18% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- IBM’s stock falls as investors struggle to shake off July earnings miss
- IBM Stock Rallies as Earnings Offer Glimmer of Recovery
- IBM Has a Chance to Rewrite Its Narrative. Can Earnings Spark a Comeback?
- IBM, Amazon quantum pricing gets a challenger in Postquant Labs
- IBM Sinks 7% as CEO's AI Spending Caution Overshadows Earnings Beat; Accenture and Infosys Ease Back
IBM shares fell 7% to $233.50 in morning trading even though its third-quarter 2026 results beat forecasts, with revenue of $17.1 billion and adjusted EPS of $2.95. Investors were disappointed that IBM kept its full-year constant-currency revenue growth forecast at 4% to 5%. CEO Arvind Krishna warned that customers are increasingly scrutinizing the true ROI of AI spending, and that some AI spending is out of control with no real return. IBM Z mainframe revenue fell 20% and consulting grew just 0.2%, while Accenture and Infosys declined by much less, suggesting the damage is mostly concentrated at IBM. Total debt reached $63.8 billion, up $2.6 billion year to date.
- Big Blue's Wild Wednesday Ride: IBM Crushes Q3 Earnings, So Why Did the Stock Tank Mid-Call?
IBM reported third-quarter revenue of $17.1 billion, above the $16.8 billion consensus, and adjusted earnings of $2.95 per share versus the $2.86 estimate, with sales up 5.9% and earnings up 11% year over year. The stock rose as much as 7.3% in after-hours trading, but reversed sharply after CEO Arvind Krishna said corporate clients are worried some AI spending is completely out of control with no real return. The article adds that Tesla's forecast hinting at cooler data center capital expenditures weighed on AI investors, and Nvidia, Oracle and CoreWeave also began falling around 6:00 p.m. ET, when the call ended.
Related markets
Latest news
- 3 reasons SpaceX could fall short of $1 trillion revenue goal
Host Ejaaz Ahamadeen outlines three obstacles that could keep Elon Musk's SpaceX (SPCX) from reaching a $1 trillion revenue goal. First, capex of $35 billion to $40 billion raises funding questions, with Tesla's balance sheet cited at about $43 billion and rumors that Musk is seeking $30 billion to $50 billion before the Anthropic IPO. Second, moving from GB300 to Vera Rubin GPUs may prove technically harder, as the host doubts Jensen Huang's claim that the new chips take about 5 minutes to bring online and notes that next-gen GPUs have historically taken time to deploy. Third, revenue forecasts diverge sharply: JP Morgan projects $254 billion next year, while Musk's estimate is $500 billion to $1 trillion.
- SpaceX Just Crushed Wall Street's Q3 Targets -- but a Potential Tesla Merger Is Even Bigger News
SpaceX reported third-quarter adjusted EPS of $0.45 on sales of $14.58 billion, far above analyst averages of $0.13 and $12.72 billion. Revenue rose 161% year over year and net income swung to $4.4 billion from a $1.1 billion loss a year earlier; Starlink sales grew 69% to $5.25 billion, while the superintelligence segment rose about 830% to $7.56 billion. The company guided first-quarter 2027 sales to $33–37 billion, and Musk said he expects annual recurring revenue of $500 billion–$1 trillion by the end of next year. On the call, Musk said special committees had been formed to explore a merger with Tesla, that he could not take part due to conflicts, and that merging was a good idea, though shareholder approval equal to 50% of total shares would be a significant hurdle.
- Blackstone's Jon Gray says CoreWeave can 'find a way through' financing pressure
Blackstone COO Jon Gray told CNBC that CoreWeave, despite concerns about its massive debt, will “find a way through” its financing challenges and that its underlying business is strong. CoreWeave has about $51.6 billion in total debt, including roughly $35 billion in notes, bonds and loans, and its shares fell 3.55% Thursday and 14% over the past week as investors questioned how it will fund its data centers. Gray said demand for computing power is strong while supply is constrained, and that if neoclouds get through this phase, compute pricing is up 50%. Blackstone's third-quarter revenue of $3.22 billion missed the $3.28 billion expected, while adjusted EPS of $1.32 beat the $1.26 consensus; Gray called it a challenging quarter due to high energy prices and rising Treasury yields. He expects a strong fourth quarter and 2027, and IPOs to resume once markets calm.
- Chip stocks break a bear trap after a $2.6 trillion rout — here are the levels bulls need to hold
The PHLX Semiconductor Index (^SOX) is down about 3% after dipping to 11,000, a support level that has rescued chip stocks twice since September, so the bear-trap rebound only holds if that floor does. Since Oct. 6, all 60 stocks in Yahoo Finance's chip basket have fallen, erasing about $2.7 trillion in market value; Lam Research and Applied Materials are each down nearly 30%, AMD nearly 20%, and Nvidia 9%. Lam fell despite record revenue because it said supply limits would cap its outlook and China sales would be “meaningfully down” in December. The Nasdaq 100 is down about 6% over the same period. The article flags 10,450–10,550 as the zone to watch if 11,000 breaks, and 12,600–12,700 as the level bulls must reclaim, while semiconductor ETFs saw record flows over the past week.
- A New Mexico Judge Just Hit Meta With a $25 Billion Penalty
On October 21, 2026, a New Mexico judge ordered Meta to pay the state $25 billion over misleading Facebook users about privacy in the Cambridge Analytica case, far above the FTC's $5 billion fine in 2019. Jurors found 26 of 29 statements misleading, and counting each statement per user or resident who saw it produced more than 43 million violations, with state law allowing up to $5,000 each; all the money goes to New Mexico schools. The judge said the conduct went to the heart of Facebook's core business and found that senior leaders, including Zuckerberg and Sandberg, misrepresented its privacy practices. Meta is appealing, has paid nothing, and interest keeps accruing, while the penalty equals about 2.5 times its $9.86 billion third-quarter net income.
- Meta is leading the way for hyperscalers, and don't sleep on the Tesla Cybercab
In this Yahoo Finance segment, Brian Sozzi highlights Meta (META) unveiling a new class of stock that could serve as a blueprint for other hyperscalers, the view that investors are overlooking Tesla's (TSLA) vehicle, and bearish sentiment around CoreWeave (CRWV). He then interviews P&G CFO Andre Schulten about encouraging growth and whether everyday product use has hurt the company with consumers.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.