--- title: "Why Are Microsoft and IBM Stocks Falling in Pre-Market Trading Today, 7/9/26?" type: "News" locale: "en" url: "https://longbridge.com/en/news/292201230.md" description: "Microsoft and IBM stocks fell in pre-market trading after reports that Starbucks is developing in-house AI software to replace vendors like Microsoft, IBM, and Oracle. This raises concerns about reduced demand for enterprise software as companies leverage AI to build internal solutions. Investors are also focused on upcoming earnings reports from both tech giants, with analysts noting Microsoft's stronger buy rating and higher upside potential compared to IBM." datetime: "2026-07-09T12:18:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292201230.md) - [en](https://longbridge.com/en/news/292201230.md) - [zh-HK](https://longbridge.com/zh-HK/news/292201230.md) --- # Why Are Microsoft and IBM Stocks Falling in Pre-Market Trading Today, 7/9/26? Microsoft (MSFT) and International Business Machines (IBM) were lower in pre-market trading on Thursday after _Bloomberg_ reported that Starbucks (SBUX) is expanding its use of AI to replace some software it currently buys from the two companies. The report raised concerns that more businesses could use AI to build their own software, reducing demand for enterprise software vendors. ### 4th of July Sale - 70% Off Double your IBM exposure with Tradr's IBX ## **Starbucks Builds More Software In-House** According to the report, Starbucks is developing alternatives to Microsoft's inventory management system and IBM's maintenance management software. Some of the new applications could be rolled out by the end of next year, subject to testing. The coffee chain spends about $400 million a year on software and is reviewing every technology contract as part of its broader plan to cut $2 billion in costs. Starbucks is also building its own point-of-sale system to replace Oracle's (ORCL) Simphony platform. ## **Investors Turn Their Focus to Earnings** The report added to concerns that AI could make it easier for large companies to build more software in-house instead of buying it from outside vendors. That could weigh on parts of the enterprise software market over time. IBM is scheduled to report its second-quarter results on July 22, while Microsoft will announce its quarterly earnings on July 29. Currently, Wall Street expects IBM to report earnings per share (EPS) of $3.02 for Q2 2026 on revenue of $17.86 billion. At the same time, Microsoft is expected to report EPS of $4.24 for Q4 FY26 on revenue of $87.61 billion. Investors will watch for updates on customer spending, enterprise AI demand, and whether companies are seeing more customers develop their own AI-powered software. ## **Is IBM or Microsoft Stock a Better Buy?** According to TipRanks' Stock Comparison Tool, Microsoft carries a Strong Buy consensus rating, while IBM is rated Moderate Buy. Wall Street also sees much higher upside in Microsoft, with an average price target implying about 47% upside over the next 12 months. In contrast, IBM's average price target suggests little upside from current levels. ### Related Stocks - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [IBM.US](https://longbridge.com/en/quote/IBM.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [SBUX.US](https://longbridge.com/en/quote/SBUX.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [ORCX.US](https://longbridge.com/en/quote/ORCX.US.md) - [IBX.US](https://longbridge.com/en/quote/IBX.US.md) - [SBU.US](https://longbridge.com/en/quote/SBU.US.md) - [ORCS.US](https://longbridge.com/en/quote/ORCS.US.md) - [ORCU.US](https://longbridge.com/en/quote/ORCU.US.md) - [MSFW.US](https://longbridge.com/en/quote/MSFW.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) ## Related News & Research - [IBM Just Made a Bold Quantum Computing Bet](https://longbridge.com/en/news/294085824.md) - [Big banks cash in, IBM crashes out](https://longbridge.com/en/news/293807762.md) - [Former Microsoft President Jeff Raikes Says AI Could Create a 'Talent Debt' by Replacing Entry-Level Work](https://longbridge.com/en/news/293906551.md) - [IBM's Krishna tries to reassure investors that AI won't disrupt company's software unit](https://longbridge.com/en/news/293657877.md) - [IBM says AI-enabled breaches average $6 million, outpacing global breach cost average](https://longbridge.com/en/news/294186919.md)