Bloomberg - Intel Corp. (INTC) and International Business Machines Corp. (IBM), two of the computer industry’s biggest bellwethers, posted the slowest sales growth in years as the European slump weighed on orders last quarter.
IBM’s revenue climbed 0.3 percent to $24.7 billion in the period, while Intel sales rose 0.5 percent to $12.9 billion. That was the smallest increase for either company since the third quarter of 2009, when the U.S. economy was just emerging from recession. Even so, Intel predicted a pickup in sales for the current quarter.
Despite the negative market reaction, these were both very encouraging reports. I think that investors were perhaps expecting too much from these reports, and that the correction could present a buying opportunity. For more on this topic, visit http://www.tradingfloor.com/posts/intel-ibm-deliver-positive-eps-surprises-intel-shows-smartphone-945924550