Activist investor stake reports surface after historic selloff
IBM’s shares fell 25% this week, the worst single-day decline in the company’s history, after the company issued a profit warning tied to its artificial-intelligence business that shocked investors, The Wall Street Journal reported.
The Journal, in its 10-Point newsletter published Friday, described the profit warning as “one of the biggest shocks to Wall Street this week.” The report said the company’s board had debated whether to release the warning ahead of its scheduled earnings date — a move the Journal described as a gamble on transparency — and that the decision was followed by the stock’s historic decline, according to the Journal.
The selloff has renewed discussions among investors about whether the century-old company should be broken apart or whether an activist investor may seek to acquire a stake, according to the Journal.
The Journal’s report, published under the headline “The Boardroom Debate That Led to IBM’s Historic 25% Stock Plunge,” did not include details on the specific share price, market valuation, or the Dow Jones impact figures carried by other outlets covering the event.