IBM employees collectively lost about $400 million in their 401(k) plans after the company's stock suffered its worst single-day decline on record, tumbling 25% on July 14. The drop followed an early second-quarter earnings report that showed revenue of $12.3 billion, falling $660 million short of projections, with adjusted earnings per share missing expectations by 8 cents. CEO Arvind Krishna attributed the shortfall to an unanticipated shift in client budgets toward AI chips and data center hardware. The losses affected roughly 150,000 employees who hold company shares in their retirement accounts, though the $400 million represents only a small fraction of the estimated $59 billion IBM 401(k) plan. MarketWatch experts cautioned against letting corporate loyalty cloud financial judgment and stressed the importance of diversification.
International Business MachinesIBM reported Q2 earnings miss with revenue $660M below projections and EPS miss by 8 cents, causing a 25% stock plunge.
