By Dhirendra Tripathi
Investing.com – IBM stock (NYSE:IBM) traded 3.6% lower in Thursday’s premarket a day after the computing giant completed the spinoff of its legacy business for infrastructure management.
The new company, Kyndryl Holdings, is scheduled to begin trading today on the New York Stock Exchange under the symbol KD.
IBM made the move to prevent the long-term decline in margins at Kyndryl affect its valuation, and to make itself more of a pure play on Cloud-related services.
Revenue at the unit has fallen for years. Third-quarter revenue at Kyndryl fell around 5% to $6.15 billion. The separation will take between $2 billion and $3 billion off IBM's fourth-quarter consolidated revenue, Chairman and CEO Arvind Krishna said last month.
While initially keeping a stake of around 20% in Kyndryl, IBM aims to dispose of that within a year.