(Photo through CNBC on YouTube)
If you listened to CNBC star Jim Cramer and acquired IBM inventory final week, you is likely to be smoking a cigarette and taking an extended stroll proper about now.
That’s as a result of IBM is down huge on Tuesday morning after firm CEO Arvind Krishna mentioned it had “numerous large deals” fail to shut and had “faltered” in its spending approach during IBM’s second quarter earnings call.
Shares of IBM plunged 24% right after the opening bell rang on Tuesday morning as a result — putting the company on track to have its worst single-day drop since 1987. IBM dropped from about $290 a share on Monday to $220 on Tuesday.
The timing was bad for Cramer — and anyone who listened to him — after he boosted IBM several times recently.
Cramer told a caller on his Mad Money program last week that he was a big fan of IBM.
“I want you to buy the stock,” Cramer told a caller who asked about IBM on July 9. “You buy some now, and then it’s been having these kind of panic fits, just panic attacks. You buy the rest then. I think IBM’s terrific, it’s inexpensive and Arvind Krishna is doing a fantastic job.”
That came a few days after he told viewers on Squawk on the Street he was digging IBM.
“People who might want tech without the cauldron of the data center should be looking at IBM,” Cramer said. “It’s got some AI, but it really is this great computer company, and it sells at 22 times next year’s earnings. I think this one works.”
Calling out Cramer’s bad calls has become a running joke among stock watchers on X and Reddit over the last few years. It even spurred the “Inverse Cramer” strategy, which is pretty much just going in the opposite direction of any stock pick he makes.
That move hasn’t worked great this year, though. The Inverse Cramer model is down about 0.10% since the start of 2026, while the S&P 500 is up 10%. But if you are following the Inverse Cramer game plan, you are doing a bit better on Tuesday after IBM took it on the chin.
The post IBM Stock Tanks Right After CNBC’s Jim Cramer Pumped It first appeared on Mediaite.