IBM Falls 5%: Trouble Ahead in Tech?
IBM dropped just shy of 5% today after earnings. Senior technology snalyst Eric Bleeker notes that while IBM's sales overall raise flags about weak IT spending in the second half of the year, an area not to ignore is weakness in its North American business.
North American spending had been far more stable than other areas like Europe in recent quarters. If IBM is an indicator of a larger slowdown in IT spending, that could be bad news in the short term for tech companies such as Tibco and F5 Networks, which have more sales concentration in America than IBM. To see Eric's full thoughts, watch the following video.
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The article IBM Falls 5%: Trouble Ahead in Tech? originally appeared on Fool.com.Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of F5 Networks, IBM, and Oracle. Motley Fool newsletter services recommend F5 Networks and TIBCO Software. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.