Business

IBM 3Q disappoints as it sheds ’empty calories’

By Michelle Chapman
Published October 20, 2014 8:04pm ET
Add Washington Examiner on Google
IBM 3Q disappoints as it sheds ’empty calories’
FILE - In this Tuesday, July 16, 2013, file photo, an IBM logo is displayed in Berlin, Vt. IBM is paying $1.5 billion to Globalfoundries in order to shed its costly chip division. IBM will make payments to the chipmaker over three years, but it will take a $4.7 billion charge in the third quarter when it reports results, Monday, Oct. 20, 2014. (AP Photo/Toby Talbot, File) | Toby Talbot

NEW YORK (AP) — IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile services. Shares fell more than 7 percent as investors sold off sharply and the stock dragged the Dow 30 into the red.

Is it too late for IBM? Or can Big Blue weather the competition as it transforms its business for the cloud?

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.