Shares of IBM (NYSE: IBM) The tech giant fell 9.9% on Friday following the release of its fourth quarter results.
IBM’s revenue declined 6% year-over-year to $ 20.4 billion. It was a little less than about $ 20.7 billion in Wall Street.
IBM is streamlining its business to focus more on its cloud operations. However, the shift is not progressing as well, many analysts anticipate. IBM’s total cloud revenue grew only 10% to $ 7.5 billion, while competitors such as Adventuress And Microsoft His upcoming earnings report is expected to deliver much more impressive cloud growth.
In addition, IBM’s adjusted operating income fell 56% to $ 2.07, largely due to a $ 2 billion pre-tax charge related to its restructuring efforts. However, the company continued to hold cash. IBM’s 2020 full-year free cash flow check was $ 10.8 billion.
IBM CEO Arvind Krishna is asking investors to be patient as IBM executes its turnaround strategy, but the company’s lackluster cloud growth is making it more difficult for shareholders to remain optimistic. Many decided to continue to wait for IBM’s growth rebound rather than sell their shares on Friday.