IBM Just Had Its Worst Day Since Black Monday 1987. I'm Using It to Buy More. Here's Why.
The tech company pre-announced earnings and revenue that fell short of investors' expectations.
Overview
Last week, International Business Machines (NYSE: IBM), better known as IBM, pre-announced its second-quarter revenue and earnings. To put it mildly, it was not well received by investors.
On the day of the earnings pre-announcement, IBM shares fell by 25%. That's its worst single-day performance since Black Monday in 1987.
Details
To be fair, IBM's announcement was certainly bad news from a short-term perspective. But it doesn't dramatically change my long-term thesis with the stock, and I'm planning to use this opportunity to add to my position. Here's exactly what IBM revealed from its second quarter numbers, what we don't know yet, and why I'm buying more shares on the dip.
Source
Originally published at www.fool.com.