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Ibm Takes a Beating

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All winning streaks come to an end. For International Business Machines Corp., IBM -8.28% the moment came this week.

After reporting profits that at least met Wall Street's expectations for 31 straight quarters dating back through the financial crisis to early 2005, IBM stumbled late Thursday. It posted a 1% dip in profit and a 5% drop in revenue that rattled investors and sent the stock down more than 8% Friday.
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IBM Shares Post Biggest Drop in 8 Years Heard on the Street: IBM Finds itself Singing the Growth Blues 04/18/2013

It was the biggest decline for IBM's shares in eight years and a setback for new Chief Executive Virginia "Ginni" Rometty, who took over the job early last year. The company said the weakness came from poor execution by its sales force—an area the CEO used to run.

In a statement Thursday, Ms. Rometty said, "We did not achieve all of our goals in the period."

IBM isn't the only company that sells technology to businesses to post disappointing results. A month ago, Oracle Corp. ORCL +0.78% reported that its sales stalled in its latest quarter and also blamed its sales force. SAP AG, SAP.XE -2.99% a rival to both companies, provided the counterpoint, reporting a 17% increase in profit Friday and saying it took market share from competitors.

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Zuma Press

IBM's disappointing results put pressure on CEO Virginia Rometty.

With its diverse operations and focused management, IBM has a reputation for finding its way around problems that affect others in the industry. That stability attracted investors including Warren Buffett, who's Berkshire Hathaway Inc. BRKB +2.21% said in November 2011 that it had plowed more than $10 billion into IBM stock.
[image] The Wal Street Journal

But the earnings miss this week has analysts speculating that shifts like the rise of cloud computing may be

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