Which stocks were hit hardest?

Datadog (DDOG) fell 4.1%, ServiceNow (NOW) dropped 3.5%, and Microsoft (MSFT) declined 3.2%.

Is this a sign of a broader tech crisis?

Not necessarily, but it raises concerns. Upcoming earnings will provide more clarity.

IBM Plunge Triggers Tech Stock Selloff

IBM's revenue warning triggered a broad tech stock selloff, with shares of Microsoft, Salesforce, Adobe, ServiceNow, and Datadog falling sharply.

July 14, 2026

2 min read

Source: GuruFocus.com

Tech stocks suffered a sharp selloff today after IBM issued a revenue warning, sparking investor fears and a wave of selling across the sector.

Details of the Move

According to reports, IBM shares dropped over 8% after the company forecasted lower-than-expected revenue. The selloff spread to major tech stocks:

Microsoft (MSFT): fell 3.2%
Salesforce (CRM): declined 2.8%
Adobe (ADBE): dropped 2.5%
ServiceNow (NOW): fell 3.5%
Datadog (DDOG): declined 4.1%

Possible Causes

IBM's warning comes amid growing concerns over slowing tech spending due to rising interest rates and inflation. The weak guidance may signal broader weakness in cloud services and software demand.

Context

Tech stocks had rallied strongly in recent months, making them vulnerable to profit-taking on any negative news. The decline also precedes the Q2 earnings season.

What It Means for Investors

Investors should monitor upcoming earnings reports from other tech companies to assess whether IBM's warning is an isolated case or a sign of a broader slowdown. Caution and portfolio review are advised amid current volatility.

Frequently Asked Questions

IBM's revenue warning sparked fears of slowing tech spending, triggering a broad selloff.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.