IBM Stock Isn’t Dying. It’s On Sale

IBM recently experienced its largest single-day decline in over 25 years – a 13.15% drop to $223.35 on February 23, 2026. So far this month, the stock has plunged 27%, on track for its worst month since 1992. The catalyst? Anthropic’s announcement that its “Claude Code” tool can automate COBOL modernization, which directly jeopardizes IBM’s mainframe business.

The key question now is: is this a legitimate structural threat, or is the market reacting excessively? We believe it’s the latter.

However, before delving into the specifics, if you’re looking for an upside with diminished volatility compared to holding an individual stock like IBM, consider the High Quality Portfolio. This portfolio has significantly…