IBM’s (NYSE:IBM) winning streak ran into a problem this quarter as the revenue decreased due to hardware problems and economic uncertainty. On Thursday, the company stated a 1 percent dip in profit and a 5 percent drop in revenue, which caused some investors concern. The stock dropped more than 8 percent on Friday.
IBM has a reputation for dodging problems that affect others in the industry, and this has normally installed confidence in investors. Now though some analysts are speculating that the technology giant may be having problems due to cloud computing.
IBM is still used by many of the world’s top corporations and government entities, but the company may no longer have all the technology that these entities want to purchase. Some newer companies including Saleforce.com (NYSE:CRM) who are renting cloud computing power are growing much faster than IBM is.