IBM (IBM) reported earnings after the close today. Profits were better than expectations, and the stock fell. I think this is an indicator of what other growth stocks will do this quarter.
Profits Beat the Street
The headlines read IBM made $2.78 a share last quarter, 13 cents above the analyst estimate of $2.65. In a normal market the stock would be up, but this isn’t a normal market.
IBM closed at $207 today, the stock is selling at $203 after hours.
The Quarter of Discontent
I kinda figured this stuff would happen this quarter (company beats and the stock falls). The reason is these stocks ran up a whole lot last quarter. Now that earnings are actually coming in, it will take awesome results to keep these stocks moving even higher.
I just feel any little negativity right now is going to send a stock down. IBM’s gone from $180 to $207 since January. That’s 15%. This stock is an 11% grower yet made a 15% move in three months. That kind of gain could have been made over the course of a year.
Sharek’s Take
I think this is going to be an earnings season that sees companies post solid results, yet the stocks fall afterwards.
