As of early trading on Tuesday, February 3, 2026, IBM stock is experiencing a significant pullback, trading down approximately 7-8%.
You are seeing the immediate volatility of the US market open. Here is the breakdown of why the stock is dropping today:
1. The “Post-Earnings” Correction (Profit Taking)
The primary driver appears to be profit-taking following a massive rally last week.
Context: On Thursday, January 29, IBM stock surged (jumping over 7%) after reporting Q4 earnings that beat Wall Street estimates, driven by strong AI and software revenue.
Today’s Action: It is common for stocks to pull back a few days after a major spike as short-term traders cash out their gains. The stock is essentially “cooling off” after hitting near-record highs last week.
2. Broader “Tech” Sell-Off
IBM isn’t the only one struggling today. The market is seeing a wider rotation out of specific tech sectors this morning.
PayPal (PYPL) is down nearly 18% today (due to a CEO change announcement).
Gartner (IT) is down over 20%.
Epam Systems and HubSpot are also posting double-digit losses.
This suggests that institutional investors are selling off “Software & Services” stocks today, and IBM is getting caught in that wave.
3. No Specific “Disaster” News
Importantly, there is no breaking news regarding a data breach, lawsuit, or product failure for IBM today.
The only recent company-specific news is the appointment of Ramon Laguarta (PepsiCo CEO) to the IBM Board of Directors, which is generally neutral/positive news and unlikely to cause a crash.
Summary:
This looks like a technical correction rather than a fundamental problem with the company. The market is re-adjusting after the excitement of the Q4 earnings beat.
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