Scary Day For Investors Of These 4 Sliding Stocks

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Rambus Inc. (NASDAQ:RMBS) is down by 23% after its third quarter results missed earnings estimates by $0.01 and revenue expectations by $2.43 million. Guidance was soft as well, with the firm expecting revenue to come in between $71 million and $77 million for the fourth quarter of 2015. Management will lay off 8% of its workforce in a move that should save the company $10 million in 2016. The quarter was a disappointment for investors who expected better numbers. Shares are now down by 3% year-to-date. Given all the mergers in tech recently, Rambus’ shares could find some support if its stock retraces a bit further.

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International Business Machines Corp. (NYSE:IBM) is off by 5.49% after missing revenue expectations for the fifth-straight quarter and trimming its 2015 EPS guidance to $14.75-to-$15.75 from the previous $15.75-to-$16.50. IBM is certainly feeling substantial competition from various tech companies, but the stock remains a free cash flow machine, with a free cash flow yield of 8.9%. Warren Buffett is a big believer in the company, as his holding company Berkshire Hathaway owns 79.57 million shares, good for 12.07% of its public equity portfolio. We side with Buffett on this one.

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Disclosure: None

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