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Shares of International Business Machines (IBM), the technology and consulting giant, have given up some of their recent gains. IBM stock is now down 10% from its 52-week high of $239.35 and is trading in negative territory to start the year. This decline highlights ongoing challenges within IBM’s consulting segment.
The consulting business has encountered headwinds stemming from factors like geopolitical uncertainty, inflation, and rising interest rates. These conditions have led businesses to cut back on discretionary IT spending. As a result, consulting revenues slightly declined during the third quarter of 2024, coming in at the lower end of management’s expectations.
