IBM Stock Plunges 25% After Revenue Warning; Law Firms Launch Securities Fraud Probe

IBM shares crashed 25% in a single session after its CEO issued a pre-market warning revealing Q2 revenue of $17.2 billion, well below the $17.86 billion consensus estimate. The reversal came just one day after glowing coverage including a Jim Cramer 'buy' call on Mad Money, raising questions about whether IBM's prior guidance painted an inaccurate picture.

Why it matters: Multiple law firms announced securities fraud investigations by Tuesday afternoon, while Trefis maintains a $283 price target implying 34% upside from the post-crash level of ~$217.