International Business Machines Corp. (NYSE:IBM) stock rose in Wednesday’s premarket session, recovering modestly after plunging 25.2% on Tuesday. The sharp selloff followed the company’s preliminary second-quarter results, which fell short of Wall Street expectations.

IBM is scheduled to report second-quarter earnings on July 22.

IBM Misses Expectations

The company said it expects second-quarter revenue of $17.2 billion, up 1% from a year earlier but below the Wall Street consensus estimate of $17.86 billion.

IBM Chairman and CEO Arvind Krishna stated that enterprise customers redirected capital spending late in the quarter toward servers, storage, and memory products to secure supply ahead of anticipated price increases.

Launches AI-Powered Power Systems

Separately, IBM launched new AI-powered Power systems and software aimed at helping enterprises automate IT operations, improve productivity and run AI workloads more efficiently. The launch includes the Power S1112 server, Power Autonomous Operations and Bob Premium Package for i.

IBM said the Power S1112 will be generally available on July 24, while Power Autonomous Operations is expected to launch on Sept. 23. The company said the autonomous software can resolve capacity constraints up to 15 times faster than manual intervention.

Technical Picture Remains Weak

The stock continues to trade below its key moving averages, signaling that the broader trend remains under pressure. The stock is 20.2% below its 20-day simple moving average, 16.5% below its 50-day SMA and 13.4% below its 100-day SMA.

The moving-average setup remains mixed. While the 20-day SMA is still above the 50-day SMA, the 50-day SMA remains below the 200-day SMA after forming a “death cross” in March. That pattern often suggests rallies could face resistance until the stock reclaims those levels.

Momentum indicators also remain cautious. The MACD is below its signal line and the histogram remains negative, indicating bullish momentum has weakened.

Technical traders are watching resistance near $258.50, while $212.50 remains a key support level.

IBM Price Action

IBM Stock Price Activity: IBM shares were trading up 1.11% at $219.49 during premarket trading on Wednesday, according to Benzinga Pro data.

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