IBM Stock Falls Below Key Level On Accenture Warning About Slowing U.S. Government Tech Spending
Technology
RYAN DEFFENBAUGH0
IBM (IBM) stock fell in heavy volume during Thursday trading after technology consulting rival Accenture (ACN) warned U.S. government business could see slower growth.
As the Trump administration and Elon Musk's DOGE initiative aims to cuts federal spending, Accenture's leadership said early Thursday that "many new procurement actions have slowed." The warning came as part of Accenture's fiscal second quarter earnings report.
Is It A Bubble Or A Black Swan Event? Determining The Type Of Market Correction
See All Videos
IBM could face similar concerns, Evercore ISI analyst Amit Daryanani told clients Thursday. He rates IBM stock a buy with a 275 price target.
"We think Accenture's updates on federal government spending headwinds and elevated macro uncertainty bodes negatively for IBM's Consulting segment and could dampen the prospects of a (second-half) recovery in that business," Daryanani wrote. "We estimate IBM has roughly 10-15% public sector exposure at the consolidated level."
On the stock market today, IBM stock is down around 4% at 242.26 in recent action.
IBM Stock Up 10% In 2025
IBM's consulting revenue fell 2% for its December-ended fourth quarter. That was a rare negative in what was a well-received quarter for the Armonk, N.Y.-based tech giant. IBM rallied following its Q4 report in late January.
IBM stock rallied more than 35% last year, helped by momentum for its AI offering for enterprises. Shares returned to record highs for the first time in a decade.
While shares have come off highs from early February, IBM has held up better than most other tech giants. Shares are ahead 10.7% overall on the year while all of the Magnificent Seven stocks are now trading in the negative for the year.
But IBM broke below its 50-day line in heavy volume with Thursday's fall. Shares also fell below a former 239.35 cup-base buy point from December during earlier trading.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings