IBM shares drop more than 17% after company warns second-quarter earnings fell short of expectations

IBM's stock plummeted by over 17% following a warning that second-quarter earnings missed expectations, largely due to a decline in software and infrastructure sales as clients opted for hardware instead. The CEO's acknowledgment of this shift highlights a strategic misstep in catering to current market trends. This downturn underscores the volatile nature of tech sector earnings and the impact of market preferences on major players like IBM, signaling potential challenges ahead in aligning their business focus with client demands.