The investment bank's analysts downgraded IBM's stock today from a "buy" to "neutral", saying the tech giant is seeing pressure on its growth markets and revenues in its higher margin lines of business.
But, as the second quarter's earnings reporting season begins, is this really less about IBM and more about the broader market?
To tackle this question, we talk numbers with CNBC contributor Zachary Karabell, president of River Twice Research, and Talking Numbers contributor Enis Taner, Global Macro Editor at RiskReversa.com.
"It's very hard for IBM, which depends on very large contracts from very large companies," says Karabell. "I don't think this is necessarily a market call. It's a large company tethered to global business that's executing very well, but it's not clear what their next level of execution's going to be."
On the other side, Taner thinks there's a broader macro issue for the company. "You can see it through the results in Oracle and Accenture recently, as well," says Taner." I think this is more of a market concern than market is pricing in right now. There's a lot of complacency in the broader market – in the S&P 500 – where multinational companies specifically are hurting from international revenues."
Where do Karabell and Taner see next for IBM and the market? Watch the video above to hear more.