BUZZ-Software stocks tumble after IBM's prelim estimates reignite AI disruption fears
Wipro Limited Sponsored ADR WIT | 0.00 | |
Intuit Inc. INTU | 0.00 | |
Oracle Corporation ORCL | 0.00 | |
Thomson Reuters Corporation TRI | 0.00 | |
Workday WDAY | 0.00 |
** Software stocks slide premarket following International Business Machines' IBM.N dour prelim Q2 estimates
** IBM tanks 22.9%; stock set for biggest daily drop since 1987
** "In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases," IBM CEO Arvind Krishna said in a letter to investors.
** Shares of Workday WDAY.O down 9.8%, Service Now NOW.N down 8.3%, Atlassian TEAM.O down 8.5%, Intuit INTU.O down about 6.1%
** Microsoft MSFT.O drops 3%, Salesforce CRM.N falls 6.4%, Zscaler ZS.O off 4.1%, Oracle ORCL.N down 2.3%.
** U.S.-listed shares of Indian IT companies Infosys INFY.N INFY.NS and Wipro WIT.N WIPR.NS down 9% and 4%, respectively
** Shares of European software companies such as SAP SAPG.DE, Sage SGE.L, Dassault Systemes DAST.PA also tumble; Canada-based Thomson Reuters' U.S.-listed shares down 1.6%
** S&P 500 Software & Services Index .SPLRCIS is down over 17% YTD on worries newer AI models will disrupt the business models of software companies