Big Banks Cash In, IBM Crashes Out

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 14 July 2026

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

BM gave its investors a heads up about the upcoming quarter, and the market didn’t like what management had to say. The company’s pre-released earnings were lower than analyst expectations, and its raising questions about the spending priorities for IBM’s clients. Plus, the big banks all had blowout earnings reports, and it isn’t just from cashing in on the SpaceX IPO.Have a question? Email us; podcasts@fool.com Want to take the next step in your investing journey? Explore Motley Fool’s Epic for our portfolio-centered investing experience, premium research, tools, and guidance: fool.com/epic Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:- IBM’s no good, horrible, no good, very bad day.- Shifting spending habits from enterprise clients.- America’s biggest banks reaping huge windfalls- Mailbag: How to buy Treasuries?- Mailbag: What to make of ToastCompanies discussed: IBM, MU, GS, BAC, JPM, WFC, C, TOSTHost: Tyler CroweGuests: Matt Frankel, Lou WhitemanEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Big banks are loving this market. Today, on Motley Fool Hidden Gems Investing.
0:07.0	Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime full contributors, Lou Whiteman, and Matt Frankel.
0:19.0	As I kind of hinted with the intro, we're going to get into the blockbuster quarter
0:23.6	that just about every bank had that reported today.
0:26.7	And it was pretty much anybody that is a major bank in the United States reported today.
0:32.4	And it looked fantastic.
0:34.1	We're also going to get into some reader emails.
0:36.1	But first, we're going to start with the big kind of news moment of the day.
0:40.4	And that is shares of IBM are down 26% as we are taping this show after the company issued preliminary results for the upcoming quarter that really were not in line with analyst expectations.
0:53.5	Now, Lou, this was a big drop. I saw a
0:57.2	Bloomberg headline earlier before we got on. It was the biggest drop since I think 1968 for the
1:03.0	stock, more than, you know, Black Monday in 1987. So what was this big drop for what, it seemed to
1:10.3	me, was a relatively modest revision to what we're seeing.
1:13.2	There had to have been more to the story here, right?
1:15.8	Yeah, I think there is.
1:16.9	How did you say this isn't the full earnings release?
1:19.6	This is preliminary.
1:21.0	IBM, basically all they warned is revenue is going to come in about $17.2 billion, short of $17.9 billion.
1:28.8	It's not a huge amount.
1:35.1	I think what triggered to sell off is kind of the reasoning given CEO Arvind Krishna said.
1:41.0	Last few weeks of June, IBM saw clients shift Kappex towards hardware, servers, memory storage,
1:46.8	away from Big Blue. That's probably not just a last two weeks at a quarter thing.
	...

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