IBM Stock Fell 22% in the Third Quarter. History Says It's Usually Higher a Year Later.
Shares were higher a year later after 11 of 13 similar plunges. Why is the one from earlier this year still down?
Overview
Shares of International Business Machines (NYSE:IBM) finished the third quarter around $220, off about 22% from where they started it. It was IBM's worst quarter since the last quarter of 2018, when the stock lost 25%.
Most of the loss came in one session. On July 14, shares sank 25% after IBM posted preliminary second-quarter results that CEO Arvind Krishna called "disappointing" in a letter to investors. That was the stock's worst day on record, even worse than its plunge of around 24% on Oct. 19, 1987.
Details
But big quarterly drops aren't new to IBM. Using daily closing prices going back to 1962, I find 13 quarters before this year in which the stock slid 18% or more. A year after each one ended, shares were higher in 11 cases.
Source
Originally published at www.fool.com.