Big Blue's shares were down $4.95, or 2.39%, to $202.5 as investors responded to the tech giant's revenue miss.
IBM brought in revenue of $24.67 billion and earnings of $2.78 a share, compared with $24.6 billion and $2.41 a share in the same period last year. Analysts surveyed by Thomson Reuters expected IBM to report revenue of $24.77 billion and earnings of $2.65 a share.
The tech bellwether saw its software revenue increase 5%, or 7% adjusted for the effects of currency. Hardware sales, however, were much less robust. Revenue from IBM's Systems and Technology group was down 7%, or 6% adjusted for the effects of currency.Intel (INTC) shares were also headed southward before market open after the company reported its own first-quarter results late on Tuesday. The Santa Clara, Calif.-based firm easily beat Wall Street's expectations, but forecast a sequential decline in gross margins for the second quarter. The chip giant's stock tumbled 91 cents, or 3.2%, to $27.56 in pre-market trading. Shares of Yahoo! (YHOO), however, surged upward on Wednesday after the embattled Internet giant posted better-than-expected first-quarter results on Tuesday. Speaking during a conference call late on Tuesday, Yahoo! CEO Scott Thompson said that the company is still trying to monetize its stake in Alibaba. Yahoo! shares climbed 59 cents, or 3.93% to $15.60 on Wednesday. The company was also the most active pre-market Nasdaq stock on share volume of 696,833. Hard drive maker Seagate (STX), was another pre-market winner after blowing past Wall Street's profit view in its third-quarter results, released after market close on Tuesday. The Cupertino, Calif.-based firm also reaffirmed its $5 billion fourth-quarter revenue target, as well as its $20 billion goal for calendar year 2012. The hard drive specialist also raised its fourth-quarter gross margin forecast from 33% to 34.5%. Seagate shares climbed 61 cents, or 2.19%, to $28.50 before market open. The company was also one of the Nasdaq's most active pre-market stocks on share volume of 188,370. Shares of Apple (AAPL) were up $4.30, or 0.71%, to $614. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
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