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IBM Takes a Beating – Shares Plunge 8% as Revenue Drop Rattles Investors

All winning streaks come to an end. For International Business Machines Corp.IBM -8.28% the moment came this week.

After reporting profits that at least met Wall Street’s expectations for 31 straight quarters dating back through the financial crisis to early 2005, IBM stumbled late Thursday. It posted a 1% dip in profit and a 5% drop in revenue that rattled investors and sent the stock down more than 8% Friday.

It was the biggest decline for IBM’s shares in eight years and a setback for new Chief Executive Virginia “Ginni” Rometty, who took over the job early last year. The company said the weakness came from poor execution by its sales force—an area the CEO used to run. More >