IBM shares plunge 25%, wiping $400 million from employee 401(k) accounts

Published Jul 15, 04:27 PM UTC

IBM shares suffered their worst single-day drop in history on July 14, 2026, falling 25% after the company reported second-quarter revenue of $12.3 billion, $660 million below expectations. The plunge erased approximately $400 million from the retirement accounts of IBM's 150,000 employees who hold company stock in their 401(k) plans. CEO Arvind Krishna attributed the miss to clients shifting budgets toward AI chips and data center hardware amid a components crisis, a trend the company did not anticipate. The article highlights the dangers of over-concentration in employer stock and quotes experts warning against letting corporate loyalty cloud financial judgment. It also references Jim Cramer's criticism of a market that excessively punishes companies not directly tied to the AI boom, calling it reminiscent of 1999 but more severe.