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IBM Earnings Not Good Enough

IBM: not good enough.

What exactly was IBM's sin that it should trade down over 3 percent after earnings beat expectations ($3.28 vs. $3.22 consensus).

Disappointing guidance? They raised the full year outlook to at least $13.35 per share, up from $13.25.

Revenue? $26.16 billion, a tad lighter than consensus of $26.26 billion. That's why the stock is down? I doubt it.

"Everyone hid in it," one tech trader wrote to me after the close. "Everything was pretty much in line but given the run up...not good enough."

Sure, there were disppointments in a key metric: signings up 12 percent, a bit less than expected, but really the problem was the stock price: an historic high of $190.53 on Friday.

And when you are at an historic high, you had better blow the lights out. That didn't happen.

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