IBM's $67 Billion Wipeout Marks Its Steepest Single-Day Plunge on Record

IBM suffered its worst single-day decline on record, with shares crashing 25.2% and erasing about $67 billion in market capitalization, according to Forbes. The rout surpassed the company's previous record set on Black Monday in 1987, when shares fell 23.7%, as CNBC noted. CEO Arvind Krishna's letter to investors acknowledged the company's disappointing second-quarter performance and failure to adapt quickly enough to changing customer demands, Forbes reported. The preliminary Q2 earnings were a major disappointment, according to Bars. "failing to adapt quickly enough to changing customer demands." Krishna's mea culpa came after IBM preannounced its Q2 earnings results, triggering the sell-off, Whatfinger reported. Despite IBM's rout, the broader market held steadier on Tuesday. Theglobeandmail.com reported that U.S. stocks ticked higher after a report showed inflation was not as bad as economists expected, even as oil prices continued to swing on worries about the economy. CNBC noted that IBM's records track trading activity back to 1968, and the stock logged its worst day on record by sinking further than its previous worst day of Oct. 19, 1987. AOL added that if the losses held, it would mark the stock's steepest one-day decline since Black Monday in 1987, when IBM fell 23.7% during the worst day in U.S. stock market history.

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