Renowned hedge fund manager Stanley Druckenmiller, now CEO of Duquesne Family Office, isn't too impressed with International Business Machines.

"I would say IBM is the poster child" for responding poorly to technological change, he said at an investment conference this week, CNBC reports.

"They literally faced a threat not too dissimilar to what Kodak and Xerox [confronted], in terms of a new technology staring them right in the face. Instead of increasing investment to combat the threat, they've actually borrowed a lot of money to buy back stock," says Druckenmiller, a former colleague of hedge fund icon George Soros.

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"Let me give you a few shocking statistics," Druckenmiller notes. "IBM's sales are where they were six years ago. Despite the increase you saw in industrial production and corporate customers, they've had no increase in sales whatsoever."

It's not just Big Blue that's at fault, he states. "This is the whole U.S. economy. Capital spending is the lowest it's been relative to sales in many years. That's the reason productivity is down. We've got to get out of this financial engineering and get more into investing in the real economy."

As for IBM, it reported Thursday that its revenue fell 2 percent to $24.4 billion in the second quarter from a year earlier, beating analysts' estimates. Net Income increased 28 percent to $4.1 billion.

"Their success is going to be tied to the cloud over the next five to 10 years," Daniel Ives, an analyst at FBR Capital Markets, tells Bloomberg. "It's more of a strategic focus for the company."

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