IBM's Better-Than-Expected Q-Profit Offsets Fears Of Meltdown in Tech Demand
Jacob Cherian
October 09, 2008 NEW YORK, NY (GroundReport) - IBM posted a higher-than-expected preliminary quarterly profit and affirmed its full-year outlook, helping to abate fears that the financial crisis is sparking a meltdown in technology demand, reports Reuters.
Shares of IBM, the world's largest computer services company, added 6 percent on the news. This also bolstered other technology shares that have been hammered on fears that a global recession would crush corporate IT spending.
"It is very nice to see some positive news, not just for IBM but for -- to a degree -- the tech space overall, given the downdraft we have seen in recent weeks," said Chuck Jones, technology analyst for Atlantic Trust Private Wealth Management, which manages $16 billion of assets, reports Reuters.
"In this market you are gun-shy about everything. It is hard to have a lot of conviction about anything out there," Jones said, but added, "This also can be a good time to buy stocks. When things look the bleakest, this is a good time to put some money to work."
