IBM Drops to Almost 5-Year Low as Profit Forecast Is Cut

  • New outlook reflects difficult transition to cloud computing
  • Currency moves crimp quarterly sales by 9 percentage points

IBM Profit Endures Tough Transition to Cloud Computing

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IBM’s stock dropped to almost a five-year low after the company cut its profit forecast, underscoring the difficulty of trying to reinvent itself as a powerhouse in cloud computing and data analytics.

The shares tumbled 5.8 percent to $140.64 Tuesday in New York, its lowest closing price since late October 2010.