IBM dropped the most it has in four years on October 17, falling more than 8% to $133.43 per share in New York, meaning its total losses this year have reached 12%, according to Fortune.
The loss of value is due to the legacy technology colossus' failure to meet analyst's quarterly revenue estimates following a recent streak of sales gains. Revenue fell 2.1% to $18.8bn while it was predicted it would reach $19.1bn.
Following six years of declining sales, IBM has been investing in a number of "strategic imperatives" moving into areas such as cloud, blockchain and AI in an attempt to spur growth. Last month alone it invested in a new blockchain payment network, launched an AI toolkit to avoid bias and a new multicloud service to stream workflow, among many other strategic moves.
Despite the losses, Jim Kavanaugh, IBM's Chief Financial Officer, stated that the business's financial standing is expected to improve in Q4. "We've got a chance to exit the year with a very strong position in our services base of business," he said.
Kavanaugh added that the losses so far this year are due to IBM "wrapping up our most successful mainframe product ever".
However, BMO Capital Markets analyst Keith Bachman stated he is "not convinced that IBM can generate consistent performance across its portfolio".