A lot of things weren’t on my bingo card coming into this week.\u00a0 <\/p>\n
I didn’t expect a billionaire tech founder to show me a lot of vintage supercars they just purchased. That was fun, I love cars.\u00a0 <\/p>\n
Speaking of cars, I also didn’t expect a $900 bill for a one-hour service on my new car. But hey, at least the dealership took a video of my car being worked on, sent it to me, and said they thought the car was beautiful. That makes shelling out $900 for some oil, wiper blades, a cabin filter, and expertly inflated tires a little more palatable.\u00a0 <\/p>\n
From a market standpoint, I didn’t anticipate further beatings in red-hot memory chip names like Micron (MU<\/a>), Sandisk (SNDK<\/a>), and IBM (IBM<\/a>). All three could now be considered crashed-out tech stocks. But only one is dead money, given my many chats with experts. <\/p>\n That is IBM.\u00a0 <\/p>\n IBM announced preliminary second quarter results with revenue of $17.2 billion, missing analyst estimates of $17.85 billion. Non-GAAP earnings are expected to be $2.93 compared to estimates of $3.02. <\/p>\n Big Blue’s stock crashed 25% on Tuesday<\/a>, its worst day ever since 1961. The stock lost 23% in a single session in October 1987. <\/p>\n The stock treaded water into the weekend, which I think says a lot about how IBM is going to be viewed here.\u00a0 <\/p>\n “I think that this is one that you’re going to have to wait, and it’s going to be in the penalty box for a while as they adjust their business,” Globalt Investments senior portfolio manager Thomas Martin said on Yahoo Finance’s Opening Bid<\/a>. <\/p>\n IBM’s stay in the penalty box is well-deserved. To get out, the company will have to stack several comeback quarters to regain investor trust. <\/p>\n I would argue the vibe is different with Micron and Sandisk, both of which are down double-digit percentages from their recent highs. I fancy these violent pullbacks reflect worries about a Fed rate hike more than problems in AI land. Taiwan Semiconductor (TSM<\/a>) and ASML (ASML<\/a>) each had great things to say this week on the AI topic, with TSMC announcing another guidance raise.\u00a0 <\/p>\n Micron and Sandisk remain multiyear growth stories \u2014 unlike IBM \u2014 and really don’t warrant an extended stay in the penalty box. <\/p>\n “I think you’re seeing basically maybe a little bit of a rotation there,” Yorkville Ives & Co. partner Dan Ives said on Opening Bid. <\/p>\n Brian Sozzi<\/a> is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi<\/a> podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi<\/a>, Instagram<\/a>, and LinkedIn<\/a>. Tips on stories? Email brian.sozzi@yahoofinance.com. <\/p>\n Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/a> <\/p>\n Read the latest financial and business news from Yahoo Finance<\/a> <\/p>\n